Cannon Trust School Exam I (Latest
Update) Questions & Correct Answers (100%
Correct Verified Answers) Already Graded A+
Save
Terms in this set (164)
Your client owns a $200,000 home $23,000
in joint tenancy, a $15,000 car in his
own name, an $8,000 CD in his
name alone, and a $100,000-life
insurance policy with a cash value
of $10,000, payable to his wife.
What is the value of his probate
estate?
- $23,000
- $33,000
- $223,000
- $333,000
A simple trust earned $27,000 in $25,000
dividends. It paid $4,000 in trustee
fees, one-half
from income and one-half from
principal. Trust accounting income
is which of the following?
- $0
- $23,000
- $25,000
- $27,000
,If the Trust Document is silent with Principal and Income Law of the State
respect to a certain cash
transaction, the Trust Administrator
should first look to which of the
following for guidance?
- Court of Jurisdiction
- Principal and Income Law of the
State
- Grantor
- OCC
When determining a long-term 3-5%
sustainable rate of return for a
unitrust payout, which of the
following best represents the range
of high confidence payout
percentages?
- 1-2%
- 2-3%
- 3-5%
- 120% of the federal midterm rate
Which of the following is an Gold bar
example of tangible personal
property?
- Gold bar
- Common stock certificate
- Patent
- Vacant land
,Which of the following is an Jewelry
example of tangible personal
property?
- Family residence
- IBM stock
- Jewelry
- Rental house
A to B for life, then to C. Following C has a remainder interest.
this transfer, which of the following
is true?
- A has a fee simple interest.
- B has a reversionary interest.
- C has a remainder interest.
- C has a life estate.
Under joint tenants with rights of Her share passes to the surviving joint tenant
survivorship, when one tenant dies regardless of what her will says.
which of the following best
describes the result?
- Her share passes through her will
to her heirs.
- Her share passes by law to her
heirs, not through her will.
- Her share passes to the surviving
joint tenant regardless of what her
will says.
- The asset must be sold and the
estate gets 1/2 of the proceeds.
, A decedent owns $400,000 in his $400,000
own name, a $200,000 home in joint
tenancy with his spouse and a
$100,000 life insurance policy with
the children as beneficiaries. Which
of the following is the amount
passing through probate?
- 0.
- $400,000.
- $500,000.
- $700,000.
In cutting down a tree, which of the Real property is converted to personal property.
following occurs?
- Real property is converted to
personal property.
- Personal property is converted to
real property.
- Real property is converted to a
fixture.
- There is no conversion, the tree
remains real property.
Which of the following transfers are Gift of $8,000 cash value life insurance policy to
includable in the gross estate of the son.
donor if made within 3 years of
death?
- Gift of $8,000 cash value life
insurance policy to son.
- Gift of $9,800 cash to daughter.
- Gift of $10,000 cash to friend.
- Gift of $5,000 stock in a closely
held company to parent.
Update) Questions & Correct Answers (100%
Correct Verified Answers) Already Graded A+
Save
Terms in this set (164)
Your client owns a $200,000 home $23,000
in joint tenancy, a $15,000 car in his
own name, an $8,000 CD in his
name alone, and a $100,000-life
insurance policy with a cash value
of $10,000, payable to his wife.
What is the value of his probate
estate?
- $23,000
- $33,000
- $223,000
- $333,000
A simple trust earned $27,000 in $25,000
dividends. It paid $4,000 in trustee
fees, one-half
from income and one-half from
principal. Trust accounting income
is which of the following?
- $0
- $23,000
- $25,000
- $27,000
,If the Trust Document is silent with Principal and Income Law of the State
respect to a certain cash
transaction, the Trust Administrator
should first look to which of the
following for guidance?
- Court of Jurisdiction
- Principal and Income Law of the
State
- Grantor
- OCC
When determining a long-term 3-5%
sustainable rate of return for a
unitrust payout, which of the
following best represents the range
of high confidence payout
percentages?
- 1-2%
- 2-3%
- 3-5%
- 120% of the federal midterm rate
Which of the following is an Gold bar
example of tangible personal
property?
- Gold bar
- Common stock certificate
- Patent
- Vacant land
,Which of the following is an Jewelry
example of tangible personal
property?
- Family residence
- IBM stock
- Jewelry
- Rental house
A to B for life, then to C. Following C has a remainder interest.
this transfer, which of the following
is true?
- A has a fee simple interest.
- B has a reversionary interest.
- C has a remainder interest.
- C has a life estate.
Under joint tenants with rights of Her share passes to the surviving joint tenant
survivorship, when one tenant dies regardless of what her will says.
which of the following best
describes the result?
- Her share passes through her will
to her heirs.
- Her share passes by law to her
heirs, not through her will.
- Her share passes to the surviving
joint tenant regardless of what her
will says.
- The asset must be sold and the
estate gets 1/2 of the proceeds.
, A decedent owns $400,000 in his $400,000
own name, a $200,000 home in joint
tenancy with his spouse and a
$100,000 life insurance policy with
the children as beneficiaries. Which
of the following is the amount
passing through probate?
- 0.
- $400,000.
- $500,000.
- $700,000.
In cutting down a tree, which of the Real property is converted to personal property.
following occurs?
- Real property is converted to
personal property.
- Personal property is converted to
real property.
- Real property is converted to a
fixture.
- There is no conversion, the tree
remains real property.
Which of the following transfers are Gift of $8,000 cash value life insurance policy to
includable in the gross estate of the son.
donor if made within 3 years of
death?
- Gift of $8,000 cash value life
insurance policy to son.
- Gift of $9,800 cash to daughter.
- Gift of $10,000 cash to friend.
- Gift of $5,000 stock in a closely
held company to parent.
