Cannon Financial Institute CFIRs Sample Questions & Correct Answers | Latest Update | Already Graded A+

"As an executor of an estate, a Bank Trust Department typically: a. Does not have a fiduciary duty. b. Is charged with the responsibility to marshal assets, pay debts, and make distributions per terms of the will. c. Can only serve if granted special permission by the regulatory authorities in addition to the bank's general fiduciary powers. d. Must have capital in excess of the normal capital required to exercise general trust powers. " : B "When the terms of an irrevocable living trust become illegal, imprudent, or impossible with which to comply, the trustee (as with a testamentary trust): a. Should petition a court of proper jurisdiction for instruction as to the proper course of action. 2 | P a g e b. Is protected in following regulatory guidance provided by the trustee's primary regulator. c. Is protected in following directions of a majority of the beneficiaries. " : A "As executor of an estate, a bank must take control of: a. Only such property as contained in schedule A attached to the will. b. All real and personal property owned by the testator at death. c. All personal property owned by the decedent at the time of their death. d. All real and personal property owned by the deceased except the personal residence occupied by the surviving spouse. " : B "A testamentary trust is established by: a. The terms of a decedent's will. b. A deposit of one's own money in his name as trustee for another. 3 | P a g e c. The settlor during his/her lifetime. d. Order of the appropriate court. " : A "An irrevocable trust can be terminated prior to its normal distribution date: a. If an adult beneficiary requests it of the trustee. b. If a beneficiary no longer wishes the monies since they are in a high tax bracket. c. Under court order with unanimous consent of all beneficiaries, including representation for minors and unborns, provided the purpose of the trust is satisfied. d. In the discretion of the trustee with the approval of the auditor. " : C "Trustees have a fiduciary duty to: a. Communicate with beneficiaries. b. Make trust assets productive at least equal to the S&P 500. c. Invest funds in accordance with the beneficiaries' wishes. d. Be profitable. 4 | P a g e " : A "An inter vivos trust is one that: a. Is set up during the grantor's lifetime. b. Is created by the last will and testament of the grantor. c. Must be revocable by the grantor during his/her lifetime. d. Must be irrevocable by the grantor during his/her lifetime. " : A "In many jurisdictions, unless the power to revoke is specified, the trust is said to be: a. Void. b. Amendable. c. Revocable. d. Irrevocable