CERTIFIED ESTATE PLANNER (CEP) STUDY GUIDE –
2025/2026 SYLLABUS
Disclaimer: This guide is a comprehensive review tool based on the updated CEP
syllabus. It illustrates answer format and covers key domains. Always refer to official
materials for authoritative details.
DOMAIN 1: ESTATE PLANNING FOUNDATIONS &
PRINCIPLES
1. What is the primary objective of estate planning?
ANSWER ✓ To systematically arrange for the management and disposal of a person's
estate during their life and at death, while minimizing taxes, costs, and administrative
burdens, and ensuring the client's wishes are carried out effectively.
2. Define the term "estate" for estate planning purposes.
ANSWER ✓ An individual's entire collection of assets, both tangible and intangible,
including real property, financial accounts, business interests, life insurance, retirement
benefits, and personal property, minus liabilities.
3. What are the three key legal documents at the core of a basic estate plan?
ANSWER ✓ 1) A Last Will and Testament; 2) A Durable Power of Attorney for Finances;
3) An Advance Healthcare Directive (which typically includes a Living Will and Healthcare
Power of Attorney).
4. Explain the concept of "testamentary capacity."
ANSWER ✓ The legal and mental competency required to make a valid will. Generally,
the testator must understand the nature of the act, the extent of their property, and the
natural objects of their bounty (heirs), and how these elements relate to form an orderly
plan of distribution.
5. What is the difference between "probate" and "non-probate" assets?
, ANSWER ✓ Probate assets are those solely in the decedent's name that transfer via the
will (or intestacy) and require court supervision. Non-probate assets transfer by
operation of law or contract outside of probate (e.g., assets with designated
beneficiaries, jointly held property with rights of survivorship, assets in a trust).
DOMAIN 2: WILLS, TRUSTS, & NON-PROBATE TRANSFERS
6. What are the common statutory formalities required for a valid, attested will?
ANSWER ✓ Typically: 1) In writing; 2) Signed by the testator (or at their direction in their
presence); 3) Attested to by two or more competent witnesses who sign in the testator's
presence.
7. When is a "holographic" will valid?
ANSWER ✓ A holographic will is one handwritten and signed by the testator. Validity
varies by state law but often requires that the material provisions be in the testator's
handwriting, and it may not require witnesses.
8. What is the primary purpose of a "pour-over" will?
ANSWER ✓ To "pour over" any assets in the testator's individual name at death into a
pre-existing inter vivos (living) trust. It ensures those assets are governed by the trust's
terms and avoids intestacy for those assets.
9. Define a "revocable living trust" (RLT) and its key characteristic.
ANSWER ✓ A trust created during the grantor's lifetime, where the grantor typically
serves as trustee and retains the full right to amend, revoke, or terminate the trust. Its
key characteristic is that it avoids probate for assets properly titled in the trust's name.
10. How does an "irrevocable life insurance trust" (ILIT) function in estate
planning?
ANSWER ✓ An ILIT owns a life insurance policy on the grantor's life. By removing the
policy from the grantor's estate, the death proceeds are not subject to federal estate tax,
providing liquidity to heirs to pay estate taxes and other costs without increasing the
taxable estate.
2025/2026 SYLLABUS
Disclaimer: This guide is a comprehensive review tool based on the updated CEP
syllabus. It illustrates answer format and covers key domains. Always refer to official
materials for authoritative details.
DOMAIN 1: ESTATE PLANNING FOUNDATIONS &
PRINCIPLES
1. What is the primary objective of estate planning?
ANSWER ✓ To systematically arrange for the management and disposal of a person's
estate during their life and at death, while minimizing taxes, costs, and administrative
burdens, and ensuring the client's wishes are carried out effectively.
2. Define the term "estate" for estate planning purposes.
ANSWER ✓ An individual's entire collection of assets, both tangible and intangible,
including real property, financial accounts, business interests, life insurance, retirement
benefits, and personal property, minus liabilities.
3. What are the three key legal documents at the core of a basic estate plan?
ANSWER ✓ 1) A Last Will and Testament; 2) A Durable Power of Attorney for Finances;
3) An Advance Healthcare Directive (which typically includes a Living Will and Healthcare
Power of Attorney).
4. Explain the concept of "testamentary capacity."
ANSWER ✓ The legal and mental competency required to make a valid will. Generally,
the testator must understand the nature of the act, the extent of their property, and the
natural objects of their bounty (heirs), and how these elements relate to form an orderly
plan of distribution.
5. What is the difference between "probate" and "non-probate" assets?
, ANSWER ✓ Probate assets are those solely in the decedent's name that transfer via the
will (or intestacy) and require court supervision. Non-probate assets transfer by
operation of law or contract outside of probate (e.g., assets with designated
beneficiaries, jointly held property with rights of survivorship, assets in a trust).
DOMAIN 2: WILLS, TRUSTS, & NON-PROBATE TRANSFERS
6. What are the common statutory formalities required for a valid, attested will?
ANSWER ✓ Typically: 1) In writing; 2) Signed by the testator (or at their direction in their
presence); 3) Attested to by two or more competent witnesses who sign in the testator's
presence.
7. When is a "holographic" will valid?
ANSWER ✓ A holographic will is one handwritten and signed by the testator. Validity
varies by state law but often requires that the material provisions be in the testator's
handwriting, and it may not require witnesses.
8. What is the primary purpose of a "pour-over" will?
ANSWER ✓ To "pour over" any assets in the testator's individual name at death into a
pre-existing inter vivos (living) trust. It ensures those assets are governed by the trust's
terms and avoids intestacy for those assets.
9. Define a "revocable living trust" (RLT) and its key characteristic.
ANSWER ✓ A trust created during the grantor's lifetime, where the grantor typically
serves as trustee and retains the full right to amend, revoke, or terminate the trust. Its
key characteristic is that it avoids probate for assets properly titled in the trust's name.
10. How does an "irrevocable life insurance trust" (ILIT) function in estate
planning?
ANSWER ✓ An ILIT owns a life insurance policy on the grantor's life. By removing the
policy from the grantor's estate, the death proceeds are not subject to federal estate tax,
providing liquidity to heirs to pay estate taxes and other costs without increasing the
taxable estate.
