CHFC CORE MAIN EXAMS ALL 2026 QUESTIONS
AND ANSWERS SURE A+
✔✔Which step of the financial planning process benefits most from teamwork? -
✔✔Analyzing and evaluating client data
✔✔What percentage of second and third marriages commonly end in divorce? - ✔✔A
majority
✔✔What is a QTIP trust? - ✔✔A trust that provides income to a surviving spouse while
preserving remainder assets for chosen beneficiaries
✔✔Why are QTIP trusts useful in blended-family planning? - ✔✔They provide support
for the spouse while controlling ultimate inheritance for children
✔✔Which business entity exposes all owners to unlimited liability? - ✔✔General
partnership
✔✔What is key employee life insurance? - ✔✔Insurance purchased by a business on
an important employee whose loss would financially harm the company
✔✔How should the amount of key person insurance be determined? - ✔✔By evaluating
the employee's financial value to the business
, ✔✔Are premiums for key employee life insurance deductible? - ✔✔Generally no
✔✔Can a closely held business owner use installment-sale proceeds as retirement
income? - ✔✔Yes
✔✔What is IRC Section 6166? - ✔✔A provision allowing installment payment of estate
taxes attributable to closely held businesses
✔✔Why is Section 6166 useful? - ✔✔It helps prevent forced liquidation of family
businesses to pay estate taxes
✔✔What percentage of the adjusted gross estate must a closely held business
generally exceed to qualify for Section 6166? - ✔✔35%
✔✔What is a buy-sell agreement? - ✔✔A legal agreement governing ownership transfer
upon death, disability, or retirement
✔✔What income tax item may be carried out to a deceased LLC owner's estate? -
✔✔The deceased owner's distributive share of partnership income
✔✔What is a letter of intent in special needs planning? - ✔✔A nonbinding document
communicating wishes and care instructions for a disabled individual
✔✔Why should a letter of intent be updated regularly? - ✔✔Because medical, social,
and financial circumstances may change
✔✔What is a supplemental needs trust? - ✔✔A trust designed to improve quality of life
without disqualifying the beneficiary from government assistance
✔✔Why should parents avoid leaving assets directly to a special needs child? -
✔✔Direct ownership may jeopardize SSI and Medicaid eligibility
✔✔What is an ABLE account? - ✔✔A tax-advantaged savings account for qualified
disabled individuals
✔✔Are earnings inside an ABLE account taxable? - ✔✔No, earnings grow tax free if
used for qualified disability expenses
✔✔How often may ABLE account investments generally be changed? - ✔✔Two times
per year
AND ANSWERS SURE A+
✔✔Which step of the financial planning process benefits most from teamwork? -
✔✔Analyzing and evaluating client data
✔✔What percentage of second and third marriages commonly end in divorce? - ✔✔A
majority
✔✔What is a QTIP trust? - ✔✔A trust that provides income to a surviving spouse while
preserving remainder assets for chosen beneficiaries
✔✔Why are QTIP trusts useful in blended-family planning? - ✔✔They provide support
for the spouse while controlling ultimate inheritance for children
✔✔Which business entity exposes all owners to unlimited liability? - ✔✔General
partnership
✔✔What is key employee life insurance? - ✔✔Insurance purchased by a business on
an important employee whose loss would financially harm the company
✔✔How should the amount of key person insurance be determined? - ✔✔By evaluating
the employee's financial value to the business
, ✔✔Are premiums for key employee life insurance deductible? - ✔✔Generally no
✔✔Can a closely held business owner use installment-sale proceeds as retirement
income? - ✔✔Yes
✔✔What is IRC Section 6166? - ✔✔A provision allowing installment payment of estate
taxes attributable to closely held businesses
✔✔Why is Section 6166 useful? - ✔✔It helps prevent forced liquidation of family
businesses to pay estate taxes
✔✔What percentage of the adjusted gross estate must a closely held business
generally exceed to qualify for Section 6166? - ✔✔35%
✔✔What is a buy-sell agreement? - ✔✔A legal agreement governing ownership transfer
upon death, disability, or retirement
✔✔What income tax item may be carried out to a deceased LLC owner's estate? -
✔✔The deceased owner's distributive share of partnership income
✔✔What is a letter of intent in special needs planning? - ✔✔A nonbinding document
communicating wishes and care instructions for a disabled individual
✔✔Why should a letter of intent be updated regularly? - ✔✔Because medical, social,
and financial circumstances may change
✔✔What is a supplemental needs trust? - ✔✔A trust designed to improve quality of life
without disqualifying the beneficiary from government assistance
✔✔Why should parents avoid leaving assets directly to a special needs child? -
✔✔Direct ownership may jeopardize SSI and Medicaid eligibility
✔✔What is an ABLE account? - ✔✔A tax-advantaged savings account for qualified
disabled individuals
✔✔Are earnings inside an ABLE account taxable? - ✔✔No, earnings grow tax free if
used for qualified disability expenses
✔✔How often may ABLE account investments generally be changed? - ✔✔Two times
per year
