Cannon Trust School Ii Exam Questions With Correct Answers

"Applicable law" refers to which of the following? Federal law Terms of the instrument Trustee, policies and procedures Court order State law {Ans: Federal law Court order State law}Property which cannot be touched or realized with the senses, such as a legally enforceable right. {Ans: intangible}A Crummey power is a form of what type of power of appointment? {Ans: General}Which of the following best describes a trust as an income tax reporting entity? A. It begins at the acceptance of trusteeship and lasts for two years. B. It begins when the trust is signed and lasts until the majority of the assets are distributed. C. It begins at date of death and lasts for the period of administration. D. It begins at initial funding and lasts for the period of administration. {Ans: It begins at initial funding and lasts for the period of administration.}Intentionally _______ trusts are often used to get a lower tax result than a complex trust would have otherwise by taxing an individual rather than a trust. {Ans: Defective}A trust in which the grantor retains such power over the trust or is given such power over a trust that all items of