California Professional Fiduciary License
Exam Questions And Correct Answers
(Verified Answers)
1. A professional fiduciary is managing the affairs of an elderly client who
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repeatedly requests large withdrawals without documented need. The
| | | | | | | |
fiduciary should:
| |
a) Permit withdrawal |
b) Communicate concerns to the client’s healthcare provider | | | | | |
c) Ignore the request | |
d) Comply without question | |
b) Communicate concerns to the client’s healthcare provider
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Because the fiduciary has a duty to question possible financial abuse
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or incapacity.
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2. When should a professional fiduciary register with the California
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Department of Financial Protection and Innovation?
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a) Only when handling clients over age 65
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b) Always, before acting as fiduciary for compensation
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c) Only for estates worth over $500,000
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d) Never
b) Always, before acting as fiduciary for compensation
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, State law requires registration before providing fiduciary services for
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pay.
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3. A fiduciary’s first duty under the California Probate Code is to:
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a) Act with loyalty to the client
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b) Maximize returns |
c) Spend conservatively |
d) Consult family |
a) Act with loyalty to the client
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Loyalty to principal is the foremost duty.
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4. If a fiduciary manages two siblings’ conservatorship jointly and a
| | | | | | | | |
|conflict arises, the fiduciary must:
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a) Choose one sibling | |
b) Resign or obtain court approval | | | |
c) Ignore conflict |
d) Let siblings decide
| |
b) Resign or obtain court approval | | | |
Fiduciaries must avoid conflicts or get the court’s permission.
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5. Commingling funds is: | |
a) Permissible with client consent | | |
b) Strictly prohibited |
c) Allowed if documented | |
d) Only allowed in emergencies
| | |
b) Strictly prohibited
| |
Mixing client funds with personal or business funds violates fiduciary
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duty.
|
6. Fiduciary compensation must be: | | |
a) Arbitrary
b) Reasonable and disclosed | |
c) Unlimited
, d) Based on client preference
| | |
b) Reasonable and disclosed
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Law requires fees be fair and disclosed to client or court.
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7. A fiduciary receives two gift offers from a client. The fiduciary should:
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a) Accept both |
b) Refuse or seek guidance | | |
c) Accept one |
d) Ignore client wishes | |
b) Refuse or seek guidance
| | | |
Accepting gifts can impair impartiality and breach loyalty.
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8. Under California law, how often must a fiduciary provide clients with
| | | | | | | | | |
account statements?
| |
a) Monthly
b) Quarterly or as required by court agreement | | | | | |
c) Semi-annually
d) Annually
b) Quarterly or as required by court agreement
| | | | | | |
Regular reporting (often quarterly) is statutory or court-ordered.
| | | | | | |
9. A fiduciary discovers suspected financial abuse by a third party. They
| | | | | | | | | |
must:
|
a) Report to Adult Protective Services
| | | |
b) Ignore until confirmed | |
c) Confront the third party | | |
d) Tell the client only
| | |
a) Report to Adult Protective Services
| | | |
Mandatory reporter laws require reporting suspected abuse.
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10. If a fiduciary supervises staff, they must:
| | | | | |
a) Delegate tasks fully and not supervise | | | | |
b) Ensure training and oversight | | |
Exam Questions And Correct Answers
(Verified Answers)
1. A professional fiduciary is managing the affairs of an elderly client who
| | | | | | | | | | |
repeatedly requests large withdrawals without documented need. The
| | | | | | | |
fiduciary should:
| |
a) Permit withdrawal |
b) Communicate concerns to the client’s healthcare provider | | | | | |
c) Ignore the request | |
d) Comply without question | |
b) Communicate concerns to the client’s healthcare provider
| | | | | | |
Because the fiduciary has a duty to question possible financial abuse
| | | | | | | | | | |
or incapacity.
| |
2. When should a professional fiduciary register with the California
| | | | | | | |
Department of Financial Protection and Innovation?
| | | | | |
a) Only when handling clients over age 65
| | | | | |
b) Always, before acting as fiduciary for compensation
| | | | | |
c) Only for estates worth over $500,000
| | | | |
d) Never
b) Always, before acting as fiduciary for compensation
| | | | | | |
, State law requires registration before providing fiduciary services for
| | | | | | | |
pay.
|
3. A fiduciary’s first duty under the California Probate Code is to:
| | | | | | | | | |
a) Act with loyalty to the client
| | | | |
b) Maximize returns |
c) Spend conservatively |
d) Consult family |
a) Act with loyalty to the client
| | | | |
Loyalty to principal is the foremost duty.
| | | | | |
4. If a fiduciary manages two siblings’ conservatorship jointly and a
| | | | | | | | |
|conflict arises, the fiduciary must:
| | | |
a) Choose one sibling | |
b) Resign or obtain court approval | | | |
c) Ignore conflict |
d) Let siblings decide
| |
b) Resign or obtain court approval | | | |
Fiduciaries must avoid conflicts or get the court’s permission.
| | | | | | | |
5. Commingling funds is: | |
a) Permissible with client consent | | |
b) Strictly prohibited |
c) Allowed if documented | |
d) Only allowed in emergencies
| | |
b) Strictly prohibited
| |
Mixing client funds with personal or business funds violates fiduciary
| | | | | | | | |
duty.
|
6. Fiduciary compensation must be: | | |
a) Arbitrary
b) Reasonable and disclosed | |
c) Unlimited
, d) Based on client preference
| | |
b) Reasonable and disclosed
| | |
Law requires fees be fair and disclosed to client or court.
| | | | | | | | | |
7. A fiduciary receives two gift offers from a client. The fiduciary should:
| | | | | | | | | | |
a) Accept both |
b) Refuse or seek guidance | | |
c) Accept one |
d) Ignore client wishes | |
b) Refuse or seek guidance
| | | |
Accepting gifts can impair impartiality and breach loyalty.
| | | | | | |
8. Under California law, how often must a fiduciary provide clients with
| | | | | | | | | |
account statements?
| |
a) Monthly
b) Quarterly or as required by court agreement | | | | | |
c) Semi-annually
d) Annually
b) Quarterly or as required by court agreement
| | | | | | |
Regular reporting (often quarterly) is statutory or court-ordered.
| | | | | | |
9. A fiduciary discovers suspected financial abuse by a third party. They
| | | | | | | | | |
must:
|
a) Report to Adult Protective Services
| | | |
b) Ignore until confirmed | |
c) Confront the third party | | |
d) Tell the client only
| | |
a) Report to Adult Protective Services
| | | |
Mandatory reporter laws require reporting suspected abuse.
| | | | | |
10. If a fiduciary supervises staff, they must:
| | | | | |
a) Delegate tasks fully and not supervise | | | | |
b) Ensure training and oversight | | |
