Certified Estate Planner (CEP) Exam
(2026/2027) – NAEPC Certification | ,
NGN-Style Case Simulations || GRADED
A+
Which of the following statements concerning the practice of law is correct?
A)The practice of law is defined by each state.
B)Special circumstances are sometimes given to financial planners to enable them to
draft wills, trust documents, and other legal documents.
C)Reviewing wills to ensure client goals are being addressed is considered practicing
law.
D)A licensed attorney can give anyone the right to practice law as their agent. -
CORRECTANSWER A)The practice of law is defined by each state.
The first step in the estate planning process includes:
A)Meeting with the client to gather information regarding the client's assets, family
structure, current estate planning documents, and desires, as needed to understand the
client's circumstances.
B)Prioritizing the client's goals.
C)Developing a formal written estate plan.
,D)Identifying key areas of concern in relation to the client's plan - taxes, cash on hand,
etc. -CORRECTANSWER A)Meeting with the client to gather information regarding the
client's assets, family structure, current estate planning documents, and desires, as
needed to understand the client's circumstances.
Everyone has their own objectives with regard to estate planning. Which of the following
objectives is most important for a financial advisor to keep in mind when counseling a
client?
A)Maximize net to heirs.
B)Minimize estate tax.
C)Minimize administrative burdens.
D)Effectively transfer assets. -CORRECTANSWER D) Effectively transfer assets.
Skip does not want to write a will. It upsets him to contemplate his own death and he
simply desires to avoid the estate planning process. All of the following are risks Skip's
estate may face due to his inaction, except:
A)Skip's property transfers contrary to his wishes.
B)Skip's estate may face liquidity problems.
C)Skip's estate faces increased estate administration fees.
D)Skip's estate faces increased debt payments for outstanding debts at death. -
CORRECTANSWER D)Skip's estate faces increased debt payments for outstanding
debts at death.
,Hardey is a financial planner in the state of Iowa. Although he attended one year of law
school, Hardey is not a licensed attorney. Which of the following actions would be
considered the practice of law?
A)Drafting wills, trust documents, and powers of attorney.
B)Reviewing wills, trust documents, and powers of attorney.
C)Directing a client to seek legal advice from a licensed attorney.
D)Acting as trustee for a client's trust. -CORRECTANSWER A)Drafting wills, trust
documents, and powers of attorney.
Which of the following does not need estate planning?
A)Jeb, age 30, married with two minor children, and a net worth of $375,000.
B)Quynh, age 35, never been married, one severely disabled son.
C)Cynthia, age 45, single, has a net worth of $450,000 and two dogs.
D)All of the above need estate planning. -CORRECTANSWER D)All of the above need
estate planning.
Of the following, who should generally be a member of the estate planning team?1.
Attorney2. Certified Public Accountant (CPA)3. Life insurance consultant4. Loan officer
A)1 and 2.
B)1 and 4.
C)1, 2, and 3.
D) 1, 2, 3, and 4 -CORRECTANSWER C)1, 2, and 3.
, Which of the following is a risk of failing to plan for one's estate?
1. Property transfers contrary to the client's wishes.2. The client's family may not be
provided for financially.3. The estate suffers liquidity problems at the client's death.4.
The estate may bear higher transfer costs.
A)2 only.
B)2 and 3.
C)1, 3, and 4.
D)1, 2, 3, and 4. -CORRECTANSWER D)1, 2, 3, and 4.
Which of the following statements concerning estate planning is correct?
1. An effective transfer occurs when a person's assets are transferred to the person or
institution intended by that person.2. An efficient transfer occurs when transfer costs are
minimized consistent with the greatest assurance of effectiveness.
A)1 only.
B)2 only.
C)Both statements 1 and 2.
D) Neither 1 or 2 -CORRECTANSWER C)Both statements 1 and 2.
Mahogany contacts you by phone. She is 65 and has accumulated over $3,000,000 in
assets. She informs you that she is not married, and wants to leave all of her assets
equally to her three adult children. She agrees to come meet with you, but asks what
she should bring. Which one of the following items would be least important for
Mahogany to bring if the topic of discussion is estate planning?
(2026/2027) – NAEPC Certification | ,
NGN-Style Case Simulations || GRADED
A+
Which of the following statements concerning the practice of law is correct?
A)The practice of law is defined by each state.
B)Special circumstances are sometimes given to financial planners to enable them to
draft wills, trust documents, and other legal documents.
C)Reviewing wills to ensure client goals are being addressed is considered practicing
law.
D)A licensed attorney can give anyone the right to practice law as their agent. -
CORRECTANSWER A)The practice of law is defined by each state.
The first step in the estate planning process includes:
A)Meeting with the client to gather information regarding the client's assets, family
structure, current estate planning documents, and desires, as needed to understand the
client's circumstances.
B)Prioritizing the client's goals.
C)Developing a formal written estate plan.
,D)Identifying key areas of concern in relation to the client's plan - taxes, cash on hand,
etc. -CORRECTANSWER A)Meeting with the client to gather information regarding the
client's assets, family structure, current estate planning documents, and desires, as
needed to understand the client's circumstances.
Everyone has their own objectives with regard to estate planning. Which of the following
objectives is most important for a financial advisor to keep in mind when counseling a
client?
A)Maximize net to heirs.
B)Minimize estate tax.
C)Minimize administrative burdens.
D)Effectively transfer assets. -CORRECTANSWER D) Effectively transfer assets.
Skip does not want to write a will. It upsets him to contemplate his own death and he
simply desires to avoid the estate planning process. All of the following are risks Skip's
estate may face due to his inaction, except:
A)Skip's property transfers contrary to his wishes.
B)Skip's estate may face liquidity problems.
C)Skip's estate faces increased estate administration fees.
D)Skip's estate faces increased debt payments for outstanding debts at death. -
CORRECTANSWER D)Skip's estate faces increased debt payments for outstanding
debts at death.
,Hardey is a financial planner in the state of Iowa. Although he attended one year of law
school, Hardey is not a licensed attorney. Which of the following actions would be
considered the practice of law?
A)Drafting wills, trust documents, and powers of attorney.
B)Reviewing wills, trust documents, and powers of attorney.
C)Directing a client to seek legal advice from a licensed attorney.
D)Acting as trustee for a client's trust. -CORRECTANSWER A)Drafting wills, trust
documents, and powers of attorney.
Which of the following does not need estate planning?
A)Jeb, age 30, married with two minor children, and a net worth of $375,000.
B)Quynh, age 35, never been married, one severely disabled son.
C)Cynthia, age 45, single, has a net worth of $450,000 and two dogs.
D)All of the above need estate planning. -CORRECTANSWER D)All of the above need
estate planning.
Of the following, who should generally be a member of the estate planning team?1.
Attorney2. Certified Public Accountant (CPA)3. Life insurance consultant4. Loan officer
A)1 and 2.
B)1 and 4.
C)1, 2, and 3.
D) 1, 2, 3, and 4 -CORRECTANSWER C)1, 2, and 3.
, Which of the following is a risk of failing to plan for one's estate?
1. Property transfers contrary to the client's wishes.2. The client's family may not be
provided for financially.3. The estate suffers liquidity problems at the client's death.4.
The estate may bear higher transfer costs.
A)2 only.
B)2 and 3.
C)1, 3, and 4.
D)1, 2, 3, and 4. -CORRECTANSWER D)1, 2, 3, and 4.
Which of the following statements concerning estate planning is correct?
1. An effective transfer occurs when a person's assets are transferred to the person or
institution intended by that person.2. An efficient transfer occurs when transfer costs are
minimized consistent with the greatest assurance of effectiveness.
A)1 only.
B)2 only.
C)Both statements 1 and 2.
D) Neither 1 or 2 -CORRECTANSWER C)Both statements 1 and 2.
Mahogany contacts you by phone. She is 65 and has accumulated over $3,000,000 in
assets. She informs you that she is not married, and wants to leave all of her assets
equally to her three adult children. She agrees to come meet with you, but asks what
she should bring. Which one of the following items would be least important for
Mahogany to bring if the topic of discussion is estate planning?
