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CRPC EXAM 2026 ACTUAL EXAM 180
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES
(VERIFIED ANSWERS) |ALREADY
GRADED A+
Owning property in joint tenancy with right of survivorship
(JTWROS) is a will substitute because
A)
the property becomes intestate when the first joint owner dies.
B)
the property passes outside of probate.
C)
the property is subject to probate.
D)
the property may be owned by more than two owners.
......ANSWER.....B
It is precisely because JTWROS does pass property outside of
probate that it is a will substitute. While a true statement, the fact
that JTWROS property may be owned by more than two owners
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does not make it a will substitute and therefore not subject to
probate.
LO 8-8
When thinking about a tax-diversified overall portfolio, when is the
proper time to take distributions from an after-tax investment like
a Roth IRA or a taxable brokerage account to fund living expenses
in retirement?
A)
when the market was experiencing average performance
B)
when taxable income was low
C)
when investments had recently had large gains
D)
when investments were down sharply ......ANSWER.....D
Tax diversification can help a client avoid selling portfolio assets at
a loss. The point is that a client lives on after-tax income in
retirement. Thus, she would have to sell enough shares of a taxable
investment to pay the income taxes and also have the money to live
on. If she pulled the money out of an after-tax investment like a
Roth account or a regular brokerage account that did not have a
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large gain, the withdrawal amount during poor investment returns
is reduced. The lower withdrawals should help the portfolio last
longer in retirement.
LO 8-6
Which of the following are true statements about the level of trust
in the financial services industry according to different major
studies?
1.The trust level of elites has recovered from the lows of the Great
Recession, but the mass population's trust level is still low and has
not recovered as much as it has for the affluent.
2.Just over 50% of executives at financial firms feel the need for
flexible ethics to get ahead at their firms.
3.Trust comes far below expertise in the eyes of prospects when
they are looking for an adviser.
4.The financial services industry enjoys a high level of trust in
comparison to most other industries when rated by the American
public. ......ANSWER.....B 1 AND 2
According to different the Edelman Trust Barometer, the trust level
for the affluent has mostly recovered from the Great Recession, but
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the level of trust for the rest of the population is far lower. Also,
53% of executives reported to the CFA Institute that their career
progression would be hindered if they were not flexible in their
ethics. On the other side, no one has felt thankful after dealing
with a financial services person whose "flexible ethics" misled
them. Stories about this and other ethical lapses have led to the
financial services industry receiving low marks in trustworthiness.
LO 9-1
The donee's basis in gifted property is determined by which of the
following valuations?
1. The property's fair market value (FMV) at the time of the gift if
the property has appreciated in value while owned by the donor
2. The donor's adjusted basis in the property at the time of the gift
if the property has appreciated in value while owned by the donor
3. The property's FMV six months after the gift if not sold prior to
that time
4. The property's FMV at the time of the gift if this value is less
than the donor's adjusted basis, and the property is sold for a loss
from the date of gift value ......ANSWER.....A 2 AND 4
Option I would constitute a step-up in basis, which can only be
obtained at death. Option III is incorrect as the donee's basis is
CRPC EXAM 2026 ACTUAL EXAM 180
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES
(VERIFIED ANSWERS) |ALREADY
GRADED A+
Owning property in joint tenancy with right of survivorship
(JTWROS) is a will substitute because
A)
the property becomes intestate when the first joint owner dies.
B)
the property passes outside of probate.
C)
the property is subject to probate.
D)
the property may be owned by more than two owners.
......ANSWER.....B
It is precisely because JTWROS does pass property outside of
probate that it is a will substitute. While a true statement, the fact
that JTWROS property may be owned by more than two owners
,2|Page
does not make it a will substitute and therefore not subject to
probate.
LO 8-8
When thinking about a tax-diversified overall portfolio, when is the
proper time to take distributions from an after-tax investment like
a Roth IRA or a taxable brokerage account to fund living expenses
in retirement?
A)
when the market was experiencing average performance
B)
when taxable income was low
C)
when investments had recently had large gains
D)
when investments were down sharply ......ANSWER.....D
Tax diversification can help a client avoid selling portfolio assets at
a loss. The point is that a client lives on after-tax income in
retirement. Thus, she would have to sell enough shares of a taxable
investment to pay the income taxes and also have the money to live
on. If she pulled the money out of an after-tax investment like a
Roth account or a regular brokerage account that did not have a
,3|Page
large gain, the withdrawal amount during poor investment returns
is reduced. The lower withdrawals should help the portfolio last
longer in retirement.
LO 8-6
Which of the following are true statements about the level of trust
in the financial services industry according to different major
studies?
1.The trust level of elites has recovered from the lows of the Great
Recession, but the mass population's trust level is still low and has
not recovered as much as it has for the affluent.
2.Just over 50% of executives at financial firms feel the need for
flexible ethics to get ahead at their firms.
3.Trust comes far below expertise in the eyes of prospects when
they are looking for an adviser.
4.The financial services industry enjoys a high level of trust in
comparison to most other industries when rated by the American
public. ......ANSWER.....B 1 AND 2
According to different the Edelman Trust Barometer, the trust level
for the affluent has mostly recovered from the Great Recession, but
, 4|Page
the level of trust for the rest of the population is far lower. Also,
53% of executives reported to the CFA Institute that their career
progression would be hindered if they were not flexible in their
ethics. On the other side, no one has felt thankful after dealing
with a financial services person whose "flexible ethics" misled
them. Stories about this and other ethical lapses have led to the
financial services industry receiving low marks in trustworthiness.
LO 9-1
The donee's basis in gifted property is determined by which of the
following valuations?
1. The property's fair market value (FMV) at the time of the gift if
the property has appreciated in value while owned by the donor
2. The donor's adjusted basis in the property at the time of the gift
if the property has appreciated in value while owned by the donor
3. The property's FMV six months after the gift if not sold prior to
that time
4. The property's FMV at the time of the gift if this value is less
than the donor's adjusted basis, and the property is sold for a loss
from the date of gift value ......ANSWER.....A 2 AND 4
Option I would constitute a step-up in basis, which can only be
obtained at death. Option III is incorrect as the donee's basis is
