American Bankers Association American Bankers Association Certifications CTFA Questions & Answers

• Question 821:

  Relief from administrative details and continuity are the major reasons for:

  A. Trust acceptance

  B. Trustee termination

  C. Naming a financial institution as a trustee

  D. Convenience and complete services of trusts

  Correct Answer: C

• Question 822:

  The trustee is responsible for producing a schedule of distribution which includes information as:

  A. Assets and their current fair market value

  B. The method of distribution

  C. Each beneficiary's share of assets and the trust's liability

  D. All of these

  Correct Answer: D

• Question 823:

  The accumulation phase in annuities can last from as long as:

  A. One day to five years

  B. One day to decades

  C. Ten days to ten years

  D. All of these

  Correct Answer: B

• Question 824:

  Unlike trust, there is no conveyance of title to the account assets. When the ________ relationship is established; legal title to the property remains with the principal.

  A. Guardianship

  B. Estate Administration

  C. Agency Services

  D. None of these

  Correct Answer: C

• Question 825:

  Trust under will is a term referred to:

  A. Living trust

  B. Testamentary trust

  C. Revocable trust

  D. None of these

  Correct Answer: B

• Question 826:

  The administration of personal trust accounts is primarily controlled by all of the following EXCEPT:

  A. Terms of Governing instrument

  B. A will

  C. Trust agreement

  D. Court order

  Correct Answer: A

• Question 827:

  Which one of the following is not commonly granted trustee's powers?

  A. Pertaining to the retention, purchase and sale of assets

  B. Those pertaining to distributions of principal

  C. Those pertaining to make dealings

  D. None of these

  Correct Answer: C

• Question 828:

  Defined benefits and defined contribution plans and individual retirement accounts are commonly administered:

  A. Corporate Trusts

  B. Charitable Trusts

  C. Estate Administrations

  D. Employee benefit trusts

  Correct Answer: D

• Question 829:

  Performance as _____________ is normally the only true trust relationship administered by a corporate trust department.

  A. Trustee under a bond indenture

  B. Bank under a bond indenture

  C. Trust under a bond indenture

  D. None of these

  Correct Answer: A

• Question 830:

  Charitable trust that is an irrevocable trust and that may be testamentary or inter-vivos (Between living persons) is called:

  A. Foundations

  B. Charitable Remainder Unitrust

  C. Charitable Remainder Annuity Trust

  D. None of these

  Correct Answer: D