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CTFA PRACTICE EXAM 3 (QUESTIONS & ANSWERS) VERIFIED CORRECTLY!!
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CTFA PRACTICE EXAM 3 (QUESTIONS & ANSWERS) VERIFIED CORRECTLY!!
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CTFA PRACTICE EXAM3 (QUESTIONS &
ANSWERS) VERIFIED
CORRECTLY!!
CTFA
Evatee 10/20/24 CTFA
,CTFA PRACTICE EXAM 3 (QUESTIONS &
ANSWERS) VERIFIED CORRECTLY!!
Q. Pertaining to the ownership of property, which statement is correct?
A. Joint tenancy ownership of an asset cannot occur between non-spouses.
B. When property is owned as tenancy in common form by four owners, each
party's interest must be 25 percent.
C. Tenancy in common ownership can occur between spouses.
D. Joint tenancy property must pass through probate upon the death of the
first tenant. Answer - Solution: The correct answer is C.
Q. A 73-year-old client with a traditional IRA and a Roth IRA wishes to make a
gift to their alma mater from the IRAs. The planned gift will be excluded from
the client's income if the client:
A. Takes $100,000 from the traditional IRA directly and donates it to the alma
mater.
B. Takes $125,000 from the traditional IRA directly and donates it to the alma
mater.
C. Donates $100,000 from the Traditional IRA to the alma mater.
D. Donates $125,000 from either IRA to the alma mater. Answer - Solution: The
correct answer is C.
A client in a high tax bracket seeks advice on maximizing tax-exempt income.
What type of purchase should be recommended for this client?
A. Hedge funds
B. Municipal bonds
C. Corporate bonds
, D. Fannie Mae bonds Answer - Solution: The correct answer is B.
In 2022, a client directs that $100,000 be distributed of the required minimum
distribution from a traditional IRA to a charity. How much of this distribution
will be taxable?
A. None of the distribution
B. The tax-deferred earnings
C. The total amount of the distribution
D. The excess charitable contributions Answer - Solution: The correct answer is
A.
Which of the following is a way to expand or limit the powers of the trustee to
an existing irrevocable trust?
A. Decanting
B. Change of situs
C. Terminate the trust
D. Appointing a trust protector Answer - Solution: The correct answer is A.
What is the BEST way for a trust officer to develop a long-lasting rapport with a
center of influence, such as an estate planning attorney?
A. Send the attorney a handwritten card and holiday gift each year to show
appreciation.
B. Sign the attorney up to the trust department's mailing list to receive bank
marketing material.
C. Offer to sign a contract to exclusively refer clients to the attorney's firm.
D. Offer to sit with the attorney's clients to explain how trusts are administered
to demonstrate personal expertise. Answer - Solution: The correct answer is D.
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