P2-U19 · PART 2 · SOURCE CYCLE 2026-2027

Trusts and Estates

Practice mapped questions Take Part 2 mock

Only cards whose complete question and answer were checked against exact primary-authority evidence appear here.

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.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

Q5.Which of the following entities may be required to file Form 706? A. A corporation. B. A partnership. C. An estate. D. An exempt entity.

An estate.

Q6.A personal representative for a decedent's estate is also a: A. Defendant. B. Decedent. C. Bondsman. D. Fiduciary.

Fiduciary.

Q7.When does a decedent's estate cease to exist? A. Until the executor steps down or resigns. B. When it is insolvent. C. Until the heirs dissolve the estate in court. D. Until the final distribution of the estate's assets is made to the heirs and other beneficiaries.

Until the final distribution of the estate's assets is made to the heirs and other beneficiaries.

Q8.What annual tax return must be filed by a bankruptcy estate? A. Form 1041 B. Form 709 C. Form 706 D. A bankruptcy estate does not file a tax return

Form 1041

Q9.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? A. 5000 B. 600 C. 100 D. 300

300

Q10.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? A. 100 B. 4300 C. 300 D. 600

300

Q11.Which of the following is not considered a separate legal entity under federal tax law? A. An exempt entity. B. A qualified disability trust. C. A grantor trust. D. Estate.

A grantor trust.

Q12.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? A. April 15, 2026 B. December 31, 2025 C. September 30, 2026 D. March 15, 2026

April 15, 2026