MCEP Master Certified Estate Planner Exam
Question 1
What is the primary purpose of estate planning?
A. To avoid paying any taxes
B. To ensure the orderly transfer and protection of assets upon death or
incapacity
C. To maximize the value of stocks in an investment portfolio
D. To reduce the number of family members who inherit
Correct: B
Explanation: Estate planning is about organizing one’s financial affairs to
provide for loved ones, minimize taxes, and ensure that assets are
distributed according to the individual’s wishes after death or
incapacitation.
Question 2
Which of the following is NOT a typical goal of estate planning?
A. Asset protection
B. Wealth preservation
C. Tax minimization
D. Increasing annual salary
,MCEP Master Certified Estate Planner Exam
Correct: D
Explanation: Estate planning does not aim to increase one's annual
salary. Its goals include wealth preservation, asset protection, and tax
minimization.
Question 3
Which document allows a person to appoint someone to manage their
affairs if they become incapacitated?
A. Will
B. Revocable living trust
C. Power of attorney
D. Letter of intent
Correct: C
Explanation: A power of attorney appoints an agent to act on behalf of
the principal in financial or health matters if incapacitated.
Question 4
What is a key benefit of creating a revocable living trust?
A. It cannot be altered or revoked
B. It avoids probate upon death
,MCEP Master Certified Estate Planner Exam
C. It eliminates all taxes
D. It gives gifts to charity
Correct: B
Explanation: Revocable living trusts are commonly used to avoid
probate, providing privacy and faster asset distribution.
Question 5
Who is responsible for administering an estate through probate?
A. Trustee
B. Executor
C. Guardian
D. Agent under power of attorney
Correct: B
Explanation: The executor is named in a will and is responsible for
managing the probate process and distributing assets.
Question 6
Which federal law primarily governs estate and gift taxes?
A. Uniform Probate Code
B. Internal Revenue Code
, MCEP Master Certified Estate Planner Exam
C. Sarbanes-Oxley Act
D. Securities Exchange Act
Correct: B
Explanation: The Internal Revenue Code is the principal set of tax laws,
including those on estate and gift taxation.
Question 7
As of 2024, what is the approximate federal estate tax exemption for
individuals?
A. $50,000
B. $1 million
C. $13 million
D. $100 million
Correct: C
Explanation: The federal estate tax exemption is about $13 million per
individual in 2024, meaning estates below this threshold are not taxed
federally.
Question 8
Which of these is a requirement for a valid will in most states?
Question 1
What is the primary purpose of estate planning?
A. To avoid paying any taxes
B. To ensure the orderly transfer and protection of assets upon death or
incapacity
C. To maximize the value of stocks in an investment portfolio
D. To reduce the number of family members who inherit
Correct: B
Explanation: Estate planning is about organizing one’s financial affairs to
provide for loved ones, minimize taxes, and ensure that assets are
distributed according to the individual’s wishes after death or
incapacitation.
Question 2
Which of the following is NOT a typical goal of estate planning?
A. Asset protection
B. Wealth preservation
C. Tax minimization
D. Increasing annual salary
,MCEP Master Certified Estate Planner Exam
Correct: D
Explanation: Estate planning does not aim to increase one's annual
salary. Its goals include wealth preservation, asset protection, and tax
minimization.
Question 3
Which document allows a person to appoint someone to manage their
affairs if they become incapacitated?
A. Will
B. Revocable living trust
C. Power of attorney
D. Letter of intent
Correct: C
Explanation: A power of attorney appoints an agent to act on behalf of
the principal in financial or health matters if incapacitated.
Question 4
What is a key benefit of creating a revocable living trust?
A. It cannot be altered or revoked
B. It avoids probate upon death
,MCEP Master Certified Estate Planner Exam
C. It eliminates all taxes
D. It gives gifts to charity
Correct: B
Explanation: Revocable living trusts are commonly used to avoid
probate, providing privacy and faster asset distribution.
Question 5
Who is responsible for administering an estate through probate?
A. Trustee
B. Executor
C. Guardian
D. Agent under power of attorney
Correct: B
Explanation: The executor is named in a will and is responsible for
managing the probate process and distributing assets.
Question 6
Which federal law primarily governs estate and gift taxes?
A. Uniform Probate Code
B. Internal Revenue Code
, MCEP Master Certified Estate Planner Exam
C. Sarbanes-Oxley Act
D. Securities Exchange Act
Correct: B
Explanation: The Internal Revenue Code is the principal set of tax laws,
including those on estate and gift taxation.
Question 7
As of 2024, what is the approximate federal estate tax exemption for
individuals?
A. $50,000
B. $1 million
C. $13 million
D. $100 million
Correct: C
Explanation: The federal estate tax exemption is about $13 million per
individual in 2024, meaning estates below this threshold are not taxed
federally.
Question 8
Which of these is a requirement for a valid will in most states?
