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PFAC || 2026 || Exam || 2 || with || precise || detailed || answers
Which || statement || is || not || true || about || Ethics? a. || Fiduciaries || whose || license || is || in || good || standing || with || the || Professional || Fiduciaries || Bureau || may || be || considered || as || alternatives || to || family || members || by || probate || judges. b. || An || ethical || person || does || the || right || thing || by || conforming || to || professional || standards || of || conduct. c. || Ethical || conduct || is || considered || a || “lower” || standard || of || conduct || than || a || legal || standard. d. || Conservators, || both || family || members || and || professional || fiduciaries, || are || expected || to || adhere || to || the || Professional || Fiduciaries || Code || of || Ethics. Everyone || appointed || as || a || conservator, || professional || or || not, || must || sign || and || acknowledge || Judicial || Council || Form || GC-348 || DUTIES|| OF|| CONSERVATOR|| AND|| ACKNOWLEDGEMENT|| OF|| RECEIPT|| OF|| CONSERVATORS|| HANDBOOK.|| Answer:|| C || || || In || protecting || the || conservatee’s || confidentiality, || which || of || the || following || would || the || conservator || not || do? a. || Limit || information || disclosure || only || to || what || is || necessary || and || relevant. b. || Tell || the || conservatee’s || ex-wife || about || his || terminal || illness. c. || Refuse || to || discuss || information || that || may || be || detrimental || to || the || well-being || of || the || client. d. || Assist || the || conservatee || in || communicating || sensitive || information. The || conservator || “stands || in || the || shoes” || of || the || conservatee. || Only || that || information || that || is || in || the || best || interest || of || the || conservatee || should || be || disclosed. || Answer: || B || || || Which || one || of || the || following || is || an || ethical || issue || for || the || conservator? a. || Never || exceeding || your || legal || authority. b. || Taking || extra || money || out || of || the || conservatee’s || account || for || your || expenses. c. || Thorough || and || accurate || documentation || of || your || conservatee’s || financial || matters. d. || Not || being || influenced || by || the || un-ethical || behavior || of || fellow || professionals.
It’s || not || your || money. || Don’t || touch || it. || Expenses || for || the || conservatorship || estate || should || be || paid || with || estate || assets. || Conservators || who || incur || out || of || pocket || expenses || must || include || those || in || their || petition || for || fees. || Answer: || B || || || In || hiring || an || attorney || for || the || trust, || which || one || of || the || following || statements || would || not || be || a || good || choice? a. || Hire || an || attorney || with || experience || in || trusts. b. || Get || references || from || friends || if || you || do || not || know || an || experienced || trust || attorney. c. || Changing || an || attorney || either || in || a || court || supervised || trust || requires || the || filing || and || the || court || approval || of || a || Substitution || of || Attorney. d. || An || attorney || with || experience || in || real || estate || would || be || suitable. Attorneys, || like || many || professionals, || specialize || in || specific || areas || of || the || law. || There || are || very || few || general || practice || attorneys. || Answer: || D || || || The || administrative || duties || of || a || fiduciary || do || not || include || which || statement? a. || Knowledge || that, || in || some || instances, || the || terms || of || the || trust || override || the || CA || Probate || Code. b. || Terms || of || the || trust || are || to || be || followed || explicitly, || even || if || those || terms || dictate || something || illegal. c. || The || Court || will || evaluate || your || decisions || concerning || trust || administration. d. || Trust || administrator || is || expected || to || fulfill || their || duties || using || care, || skill || and || caution. When || in || doubt—PETITION || THE || COURT || FOR || INSTRUCTIONS. || Answer: || B || || || The || fiduciary || is || expected || to || remain || impartial || and || in || doing || so, || would || not || do || which || of || the || following? a. || Uphold || the || directives || of || the || trust. b. || Communicate || fairly || with || each || party. c. || Follow || directions || from || the || heirs || to || invest || aggressively || in || questionable || stocks. d. || Not || allow || your || personal || feelings || to || influence || your || decisions. Trusts || can || allocate || certain || powers || to || a || beneficiary || who || is || not || named || as || a || co-trustee. || A || beneficiary || may || have || the || power || to || direct || specified || investments || or || direct || all || investments || leaving || the || trustee || with || bookkeeping || responsibilities || only. || The || beneficiary || with || these || powers || is || held || to || the || same || standards || for || prudent || investments. || Answer: || C
c. || Makes || it || difficult || for || beneficiaries || to || inherit || assets. d. || Can || be || completed || very || quickly. Living || trusts || are || often || accompanied || by || a || “Pour || Over” || Will, || which || transfers || non-trust || assets || to || the || trust || at || date || of || death. || If || the || value || of || the || assets || outside || of || the || will || exceeds || the || minimum || probate || threshold, || a || probate || may || have || to || be || opened. || Answer: || C || || || Regarding || inter || vivos || or || living || trusts, || which || one || of || the || following || statements || is || not || applicable? a. || Funded || with || all || the || assets || during || one’s || lifetime. b. || Become || irrevocable || upon || death || of || the || person || creating || it. c. || Revocable || trust || acts || as || a || will. d. || Surviving || spouse || cannot || amend || it. Tim’s || Notes: || Trusts || can || be || amended || after || a || settlor || has || passed || away || if || the || amendment || advances || a || purpose || of || the || trust || or || if || circumstances || change || such || that || the || settlor || was || unaware || of || when || the || settlor || made || the || trust. Original || Comment: || A || copy || of || the || inter || vivos || trust || must || be || attached || when || filing || IRS || Form || 706. || Answer: || D || || || Which || statement || does || not || describe || a || special || needs || trust? a. || Created || to || care || for || an || individual || with || special || needs. b. || Litigation || trust || (1st || party) || and || 3rd || party || trusts || are || two || types || of || special || needs || trusts. c. || Special || needs || trust || beneficiaries || are || not || entitled || to || public || benefits. d. || Used || to || improve || the || quality || of || life || for || an || individual || with || special || needs. First || party || SNT’s || created || after || 2008 || are || subject || to || court || supervision. || Annual || or || biannual || accountings || and || petition || for || fees || are || required. || The || trustee || cannot || pay || himself/herself || nor || the || attorney || representing || the || trustee || without || court || approval. || Answer: || C || || || Restrictions || on || 3rd || Party || SNTs || do || not || include || which || of || the || following? a. || Funds || can || only || be || used || for || food, || shelter || or || clothing. b. || Funds || cannot || be || used || to || substitute || for || MediCal || benefits. c. || Beneficiary || is || limited || to || $2,000 || under || their || direct || control.
d. || If || restrictions || are || not || honored, || the || fiduciary || can || be || found || liable || for || loss || of || benefits. Money || expended || for || food, || shelter || or || clothing || will || be || counted || toward || income || and || could || reduce || benefits. || Answer: || A || || || Additional || types || of || special || trusts || do || not || include || which || of || the || following? a. || Spendthrift || Trust. b. || Education || Trust. c. || Single || Family || Trust. d. || Charitable || Remainder || Uni || trust. A || trust || is || a || “basket” || in || which || you || put || “something” || and || the || basket || comes || with || “instructions” || on || what || to || do || with || what || is || in || the || “basket”. || Answer: || C || || || Which || of || the || following || does || not || describe || Standard || of || Care || (Uniform || Prudent || Investor || Act) || of || the || Probate || Code? a. || Describes || the || nature || of || care || the || administrator || must || apply || to || their || duties. b. || Trustee || has || duty || to || administer || a || trust || with || reasonable || care, || skill || and || caution. c. || Trustees || will || not || be || judged || by || what || other || trustee’s || would || do || in || same || situation. d. || Trustee || has || duty || to || administer || trust || under || prevailing || circumstances. The || Prudent || Investor || rule || was || created || to || direct || the || trustee || to || consider || the || effects || of || inflation || and || to || evaluate || the || relative || risks || and || rewards || of || the || trust || portfolio. || Answer: || C || || || Which || statement || does || not || reflect || the || duties || of || a || trustee? a. || Administration || of || a || trust || by || its || terms. b. || Accounting || to || the || court || when || required. c. || Understand || that || all || trusts || are || the || same. d. || Protection || of || confidentiality. Every || trustee || has || one || mission—to || protect || the || beneficiary. || The || trustee || must || maintain || a || minimum || standard || of || care. || The || standard || of || care || is || not || static || as || it || varies || based || upon || the || expertise || of || the || trustee. || Answer: || C
d. || Assets || that || must || be || held || for || the || life || of || the || trust. e. || None || of || the || above A || trust || conveys || or || limits || authority || as || to || investment || management, || the || ability || to || borrow || or || loan || and || how || trust || assets || are || disposed. || Answer: || E || || || In || adhering || to || the || Professional || Fiduciary || Code || of || Ethics, || the || trust || administrator || would || not || do || which || of || the || following? a. || Avoid || any || conflict || of || interest || or || appearance || of || conflict || of || interest. b. || Manage || estates || prudently || and || maintain || detailed || fiduciary || records. c. || Establish || a || joint || checking || for || the || trust || and || your || personal || funds. d. || Never || exceed || the || bounds || of || legally || granted || authority. It’s || not || your || money. || Don’t || touch || it. || Answer: || C || || || Which || statement || does || not || describe || adherence || to || the || Professional || Fiduciary || Code || of || Ethics? a. || Trustee || shall || not || engage || in || any || form || of || discrimination. b. || Fiduciary || can || accept || additional || fees || because || compensation || is || low. c. || Fiduciary || shall || make || decisions || that || maximize || and || protect || the || client's || rights. d. || Fiduciary || decisions || shall || allow || for || maximum || independence || and || reliance. Most || trust || documents || give || the || trustee || the || power || of || “discretion”. || Use || that || power || with || care. || Answer: || B || || || When || a || trustee || resigns, || which || statement(s) || are || true? a. || Liability || of || the || resigning || trustee || continues || through || full || review || of || successor || trustee. b. || Liability || for || acts || and || omissions || is || not || released || by || trustee’s || resignation. c. || Resigned || trustee || must || be || released || by || the || judge || from || court’s || jurisdiction. d. || All || of || the || above. In || some || cases, || the || appointment || of || a || successor || trustee || will || not || require || the || successor || to || “look || back” || on || the || prior || acts. || Answer: || D || || || A || conservator’s || position || may || end || for || all || except || which || one || of || the || following || reasons:
a. || Conservator || resigned. b. || Conservator || died. c. || The || Judge || dies. d. || Court || removed || the || conservator || from || office. A || conservator || who || is || removed || for || cause || by || the || court || must || report || this || removal || to || the || Professional || Fiduciary || Bureau. || Answer: || C || || || Which || of || the || following || can || have || the || trustee || removed? a. || Settlor b. || Beneficiaries c. || Court d. || All || of || the || above. Trustee’s || serve || at || the || pleasure || of || the || settlor || and, || in || many || cases, || the || beneficiaries || and || the || court. || Not || all || trusts || are || court || supervised. || Answer: || D || || || Which || of || the || following || is || not || correct || regarding || Power || of || Attorney? a. || Power || of || attorney || is || a || legal || instrument || to || delegate || legal || authority. b. || The || Principal || executes || the || Power || of || Attorney. c. || A || conservatorship || is || not || impacted || by || a || durable || power || of || attorney. d. || When || you || are || a || conservator, || the || conservatee || cannot || grant || you || a || durable || power || of || attorney. The || order || appointing || a || conservator || of || the || estate || should || also || include || language || terminating || any || and || all || prior || POAs. || Answer: || C || || || In || a || petition || for || conservatorship, || which || of || the || following || factors || regarding || the || power || of || attorney || is || true? a. || A || power || of || attorney || created || for || a || specific || purpose || may || be || of || benefit || to || the || client. b. || The || revocation || of || all || powers || of || attorney || is || necessary || when || creating || a || conservatorship. c. || Outstanding || powers || of || attorney || held || by || individuals || may || be || disruptive || and || may || result || in || actions || that || are || independent || of || the || fiduciary’s || knowledge.
Black’s || Law || Dictionary || defines || “duty” || as || …a || human || action || which || is || exactly || conformable || to || the || laws || which || require || us || to || obey || them. || Answer: || C || || || The || duties || of || the || trustee || to || the || beneficiary || include || all || except || which || statement? a. || Duty || of || impartiality. b. || Avoidance || of || conflicts || of || interest. c. || Has || no || duty || to || delegate. d. || Productivity || of || trust || property. California || law || recognizes || that || trusts || describe || a || fiduciary || “relationship” || between || the || person || holding || legal || title || to || property || for || the || benefit || of || another || and || the || beneficiary. || Every || trustee || has || one || duty—to || protect || the || beneficiary. || Answer: || C || || || Trustee || liability || is || indicated || in || which || statement? a. || Any || loss || or || depreciation || in || value || of || estate, || plus || interest. b. || Use || of || broader || authority || than || specified || in || the || trust || document. c. || Beneficiaries || can || hold || trustee || responsible || for || losses || and || profit || that || would || have || accrued || to || the || trust || but || was || lost || as || a || result || of || the || breach. d. || All || of || the || above. A || trustee || will || only || be || surcharged || if || the || loss || or || depreciation || were || the || result || of || acts || or || omission || of || the || trustee. || The || trustee || cannot || be || held || accountable || for || market || fluctuations || beyond || his/her || control. || Answer: || D || || || Which || statement || is || correct || when || considering || trustee || liability || to || beneficiaries || for || acts || of || a || predecessor? a. || Successor || trustee || knows || or || should || have || known || of || a || breach || of || trust b. || Successor || trustee || allows || breach || of || trust || to || continue c. || Successor || trustee || is || responsible || to || redress || neglect || in || transfer || of || trust || property d. || All || of || the || above. This || question || is || true || only || if || the || successor || trustee || has || “look || back” || authority || on || prior || acts. || Answer: || D || || ||
The || California || Probate || Code, || PCS || 16461, || addresses || the || clearing || of || blame || of || a || trustee || in || all || except || which || circumstance? a. || Liability || is || limited || by || the || trust || writer b. || Acts || of || gross || negligence || or || willful || misconduct. c. || Trusts || default || to || the || general || rules || under || California || law d. || Most || trusts || limit || the || liability || of || a || trustee e. || Consent || of || all || beneficiaries Although || a || trust || may || not || exculpate || a || trustee || from || liability || for || a || profit || from || a || breach, || the || trust || may || limit || the || trustee’s || duties || with || the || effect || that || the || trustee || does || not || commit || a || breach || in || that || area. || Answer: || B || || || The || grounds || for || removal || of || a || trustee, || by || the || court, || are || best || described || in || which || statement? a. || Trustee || has || committed || a || breach || of || trust b. || Trustee || is || insolvent c. || Trustee || fails || or || declines || to || act d. || Trustee’s || compensation || is || excessive e. || All || of || the || above. The || trust || instrument || may || grant || the || power || to || remove || a || trustee || with || or || without || cause. || Answer: || E || || || When || considering || the || liability || of || a || resigning || trustee, || which || statement || is || not || correct? a. || Resigning || trustee’s || final || accounting || does || not || need || court || approval b. || Liability || may || continue || through || a || full || review || by || the || successor || trustee c. || Resigning || trustee || must || be || released || by || the || judge || from || the || court’s || jurisdiction d. || Resigning || does || not || release || liability If || the || trust || is || not || court || supervised, || the || trustee || must || still || submit || an || accounting || under || PC || 16063. || The || statute || of || limitations || for || the || beneficiaries || to || object || is || 3 || years. || Answer: || A || || || When || considering || who || can || request || the || removal || of || a || trustee, || which || statement || is || in correct? a. || Co-trustee
b. || There || is || no || right || to || a || jury || trial || in || trust || proceedings. c. || Individuals || with || fiduciary || experience || should || adjudicate || probate || issues. d. || Only || B || and || C || are || correct Tim’s || Notes: || Trial || Courts || are || also || called || "Superior || Courts”. || Superior || Courts || handle: · || All || criminal || cases || (felonies, || misdemeanors, || and || traffic || tickets) · || All || civil || cases || (family || law, || probate , || juvenile, || and || other || civil || cases) · || Appeals || of || small || claims || cases || and || other || civil || cases || worth || $25,000 || or || less · || Appeals || of || misdemeanor || cases In || 1988, || the || Legislature || eliminated || jury || trials || in || will || contests || once || and || for || all. We || are || assuming || a || fiduciary || responsibility || as || it || applies || to || probate || matters, || i.e. || trusts, || conservatorships || and || estates. || Fiduciaries || also || serve || as || receivers || and || referees || in || civil || actions || and || trustees || in || bankruptcy || matters. || Answer: || D || || || When || considering || the || methods || of || creating || a || trust, || which || statement || is || not || correct? a. || A || declaration || by || the || owner || of || the || property || that || the || owner || holds || the || property || as || trustee. b. || Transfer || of || property || by || the || owner, || by || will || or || other || instrument || taking || effect || upon || the || death || of || the || owner. c. || An || unenforceable || promise || to || create || a || trust d. || A || transfer || of || property || by || the || owner || during || the || owner's || lifetime || to || another || person || as || trustee. The || settlor/trustor, || assuming || capacity, || institutes || the || creation || of || a || trust. || Answer: || C || || || Which || of || these || statements || is || not || one || of || the || legal || elements || necessary || to || create || a || trust? a. || Settlor || must || show || intention || to || create || a || trust. b. || Trust || must || be || funded || i.e. || have || trust || property. c. || A || trust || may || prohibit || the || marriage || of || a || beneficiary. d. || Trusts || can || be || created || for || any || legal || purpose. A || trust || cannot || prohibit || a || beneficiary || from || marrying || but || it || can || exclude || the || spouse || from || any || benefit || from || the || trust. || Answer: || C || || ||
Beneficiaries || of || a || trust || may || include || all || except || which || statement? a. || An || individual b. || A || Charity c. || An || identifiable || group d. || A || specific || class || of || beneficiaries e. || All || of || the || above || are || correct Beneficiaries || can || be || individuals, || charities || and || groups || or || organizations. || There || can || also || be || a || group || called || “specific || bequest || beneficiaries” || who || receive || a || gift || certain. || Answer: || E || || || A || trustee’s || notification || to || beneficiaries || is || not || described || by || which || statement? a. || Accounting || shall || occur || at || least || every || 2 || years b. || Accounting || shall || occur || at || the || termination || of || the || trust c. || Accounting || shall || occur || when || there || is || a || change || of || trustee d. || Notification || shall || occur || when || a || trust || becomes || irrevocable If || the || trust || is || court || supervised, || the || accounting || must || conform || with || PC || 1061. || If || there || is || no || court || supervision, || the || accounting || may || be || submitted || to || the || beneficiaries || pursuant || to || PC || 16063. || Answer: || A The || duties || of || a || trustee || under || the || Uniform || Prudent || Investor || Act || include || which || statement(s)? a. || Duty || to || consider || purpose || of || the || trust b. || Duty || to || be || impartial c. || Duty || to || delegate || properly d. || Duty || to || manage || costs e. || All || of || the || above A || trustee || has || the || duty || to || invest || trust || property || for || the || benefit || of || the || beneficiaries, || subject || to || any || restrictions || or || limitations || stated || in || the || trust || instrument. || In || carrying || out || this || duty, || the || trustee || is || subject || to || the || Uniform || Prudent || Investor || Act. || Answer: || E || || || According || to || the || general || provisions || and || fiduciary || duties || in || the || administration || of || a || trust, || as || defined || in || the || CA || Probate || Code, || which || statement || is || correct?
