Sample questions
Sample questions with answers.
From the practice pool, with the answers shown. The exam asks its own set of 40.
Living Trusts and Testamentary Transfers
1. Which of these does the course say generally follow from placing a house in a properly funded living trust, rather than leaving it only in a will? (choose 2–3)
Choose all that apply.
- Greater privacy about what the person owned Correct answer
- Continuity of title without court delay Correct answer
- Automatic transfer of trusteeship to the state
- Guaranteed elimination of all inheritance taxes
- Avoiding the public probate process Correct answer
Why: The course credits living trusts with avoiding probate, more privacy, and continuity of title — it never promises tax elimination or state takeover of trusteeship.
Trust Types
2. Someone moves their savings into a revocable trust hoping to shield them from future creditors. Which limit of a revocable trust does the course point to?
- A revocable trust is not legally allowed to hold any cash or savings
- A revocable trust hands legal title over directly to the creditors involved
- A revocable trust automatically becomes irrevocable once a creditor appears
- The settlor can still revoke it, so the assets remain treated as their own Correct answer
Why: The power to revoke is the weak spot: what the settlor can take back at will is generally still treated as theirs, so a revocable trust gives little asset protection. That trade-off is what irrevocable trusts address.
Basic Trust Concepts
3. In the vocabulary the course teaches, what is the "trust res" (or corpus)?
- The property placed into the trust Correct answer
- The court that would hear a trust dispute
- The person managing the trust
- The document that creates the trust
Why: Res / corpus names the property itself — what actually sits inside the trust, as opposed to the people or paperwork around it.
Creating an Express Trust
4. Drafting an express trust indenture, per the course, involves naming the trust and describing the estate placed into it, plus what else?
- Selecting and naming the trustee for the estate Correct answer
- Filing a patent application to protect the arrangement
- Setting a fixed interest rate that applies to the estate
- Registering a trademark for the trust's chosen name
Why: The course's drafting sequence is: name the trust, select the trustee, describe the estate — trustee selection is the missing piece here, not a patent, trademark, or interest rate.
The Substance of a Trust
5. The course argues a trust's real "substance" lies in which of these, rather than in the paperwork alone?
- The exact job title that appears for the trustee on the document
- How legal control and beneficial enjoyment of the property are split Correct answer
- The total number of pages in the trust indenture document
- The particular state in which the trust document was signed and notarized
Why: Substance-over-form: what makes something function as a trust is the real split between who controls the property and who benefits from it.
Splitting Titles
6. Which of these correctly describe the split between legal and equitable title, as the course teaches it? (choose 2–3)
Choose all that apply.
- Splitting title is only possible for real estate, never personal property
- This split is the mechanism that lets a trustee manage property for someone else's benefit Correct answer
- Legal title carries the formal power to manage and deal with the property Correct answer
- Equitable title carries the beneficial right to enjoy the property's value Correct answer
- Equitable title gives the beneficiary the day-to-day power to manage and sell the property
Why: The course teaches legal title as management power and equitable title as beneficial enjoyment, with the split being exactly what lets a trustee act for a beneficiary. The split is not limited to real estate, and the power to manage sits with legal title, not with the beneficiary's equitable title.
Property, Dominion and Estates
7. You're reading a property interest that is "carved out" of the full bundle of rights — limited in time or scope rather than covering everything forever. What does the course call this kind of interest?
- Corpus
- Allodial title
- Fee simple
- Estate Correct answer
Why: The course treats an "estate" as a carved-out, limited interest in property, distinct from fee simple's fuller, unlimited ownership.
Deeds of Trust & Mortgages
8. A client is comparing a straight mortgage to a deed-of-trust arrangement for the same loan. Structurally, what key difference does the course draw between them?
- A deed of trust can never be foreclosed under any circumstances
- A deed of trust brings in a third-party trustee who holds title as security Correct answer
- A straight mortgage comes with a lower interest rate than a deed of trust
- A deed of trust secures loans on personal property like cars, not real estate
Why: The course's structural contrast is the added third-party trustee holding security title in a deed of trust, versus the direct two-party lien of a plain mortgage.