P2-U19 · PART 2 · SOURCE CYCLE 2026-2027
Trusts and Estates
How to complete this unit
This unit uses 21 source-gated recall cards and 21 admissible practice questions. Complete the sequence in order; the unreleased wiki prose remains outside the learner path.
- 1 · LearnBuild the rule
Answer each recall prompt before opening it. Then learn the exact rule, test the controlling facts through four quick challenges, explore common questions, and finish with one own-words teach-back.
- 2 · ApplyUse it in context
Complete at least 20 mapped questions over two sessions. Review the explanation even when the answer is correct.
- 3 · ProveTest readiness
Use the Part 2 mock under time pressure. Return here for every flagged or missed concept before the next attempt.
Verified recall questions
Only cards whose complete question and answer were checked against exact primary-authority evidence appear here. Stable unit ownership gathers this lesson across 1 textbook collection.
Q1.When does the Alder Estate generally cease to exist?
After final distribution to heirs and beneficiaries
Q2.Before preparing Form 1041, how does a fiduciary determine an estate’s or trust’s accounting income?
Under the governing instrument and applicable local law
Q3.Which fact is a hallmark of an abusive trust arrangement?
Promised tax benefits without meaningful change in control or benefit
Q4.How are capital gains allocated to corpus and paid or permanently set aside for charitable purposes treated in the referenced Form 1041 computation line?
Do not include them on that line
Q5.When is Form 1041 generally due for a fiscal-year estate or trust?
The 15th day of the fourth month after the tax year closes
Q6.Which of the following entities may be required to file Form 706?
An estate.
Q7.A personal representative for a decedent's estate is also a:
Fiduciary.
Q8.When does a decedent's estate cease to exist?
Until the final distribution of the estate's assets is made to the heirs and other beneficiaries.
Q9.What annual tax return must be filed by a bankruptcy estate?
Form 1041
Q10.The Granger Irrevocable Trust is a simple trust whose governing instrument requires that all income be distributed during the year. What is the exemption amount for this type of trust in 2025?
300
Q11.The Saluki Trust is a U.S. trust. The trust has a governing instrument that requires all income to be distributed in the current year. It is not a qualified disability trust. What is the Saluki Trust’s exemption amount in 2025?
300
Q12.Which of the following is not considered a separate legal entity under federal tax law?
A grantor trust.
Q13.Warren died on October 18, 2025, leaving an estate valued at $33 million. His executor elects a calendar year for the estate. When is Form 1041 (the income tax return for the estate) due?
April 15, 2026
Q14.All of the following are characteristics of a simple trust except:
The trust may distribute assets to charity.
Q15.What is included in the gross estate?
The gross estate includes everything the taxpayer owns at the date of death.
Q16.When should Form 56 be filed?
As soon as the estate's EIN is received.
Q17.The Beaumont Estate is required to distribute all its income currently. The estate has distributable net income (DNI) of $20,000 on its 2025 return. The only distribution the executor made during the year was $5,000 in cash, paid to the decedent's son, Carlton Beaumont. According to the terms of the will, Carlton is entitled to 50% of the estate's DNI, and his sister, Jasmine Beaumont, is entitled to the other 50% of the estate's distributable net income. Which of the following statements is correct?
Carlton must pay tax on $10,000.
Q18.Which type of trusts are not subject to the Net Investment Income Tax?
Tax-exempt trusts
Q19.What is the purpose of Form 1310?
To claim a refund on behalf of a deceased taxpayer.
Q20.Alvin Lewis died three years ago. Alvin's eldest daughter, Connie, and her three younger brothers are all beneficiaries of their late father's estate. In 2025, the Estate of Alvin Lewis has distributable net income of $12,000, consisting of $6,000 of rents, $4,000 of dividends, and $2,000 of taxable interest. The estate's executor, a family lawyer, distributes the income under the provisions of Alvin Lewis' final will, which includes a stipulation that allocates all the dividend income to Connie. How is the distribution to Connie characterized for tax purposes?
$0 rents; $4,000 dividends; $0 taxable interest.
Q21.On September 10, 2025, Marcelle dies. At the time of his death, his combined assets are worth $29 million, so an estate tax return is required to be filed. When is the due date for the Form 706?
June 10, 2026
Ready to move on?
- ▸ Explain at least 80% of these 21 rules without opening the answer, twice on different days.
- ▸ Score 80% across 20 or more mapped questions over two sessions, not one memorized round.
- ▸ Complete a timed Part 2 mock and return to this unit if its concepts remain flagged or missed.
Use these checks to choose your next study action. They do not predict a PSI scaled score.