CEPA (CERTIFIED EXIT PLANNING ADVISOR)
EXAM PREP VERSION 1 2026/2027 WITH
ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS
|CURRENTLY TESTING QUESTIONS AND
SOLUTIONS|ALREADY GRADED A+|NEWEST
|JUST RELEASED!!|GUARANTEED PASS
A _____ gift is one in which the person who received the gift has the unrestricted right to the
immediate possession and use of it.
a. IRA gift
b. ILIT gift
c. Present interest gift
d. Future interest gift
c. Present interest gift
Which of the following statements is not true?
a. All states have an estate tax
b. A descendant's unused federal estate tax exemption may be used by the surviving spouse
c. The most efficient use of the federal estate/gift exemption is during life
d. A gift received by a person is not taxable income
a. All states have an estate tax
The main goal of minimizing wealth tax is to:
a. Increase the amount of earnings placed towards trusts
b. Create equality between both the client's and the IRS's portion of earnings
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,c. Maximize the client's portion of earnings and minimize the IRS's portion
d. Minimize the client's portion of earning and maximize the IRS's portion
c. Maximize the client's portion of earnings and minimize the IRS's portion
What does the acronym "NING" stand for when looking at income tax planning options?
a. Non-Grantor Incomplete Nevada Trust
b. Nevada Incomplete Non-Grantor Trust
c. Nevada Isolated Non-Grantor Trust
d. Nevada Isolated Non-Grantor Tax
b. Nevada Incomplete Non-Grantor Trust
Which of the following is a disadvantage of an intentionally defective grantor trust (IDGT)?
a. IDGT continues for multiple generations without being subject to federal estate tax
b. Gifts to an IDGT do not trigger capital gains
c. States impose higher taxes on IDGT
d. Client cannot be a beneficiary
d. Client cannot be a beneficiary
A strategy which makes assets difficult or impossible to reach is called:
a. Asset insurance
b. Asset limitation
c. Asset placement
d. Asset protection
d. Asset protection
What are the benefits for the business owner and family for integrating charitable
contributions?
a. Wanting to transfer values and purpose, not just assets
b. Creating intergenerational common ground to collaborate, make joint decisions, gain
confidence, develop/fulfill potential
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,c. Developing an emotional and functional bridge between wealth, purpose, and society
d. All of the above
d. All of the above
As categorized by the Fisher College of Business at the Ohio State University, what are the three
types of companies in the marketplace?
a. Investors, Analysts, Efficiency Experts
b. Investors, Innovators, Strategists
c. Investors, Analysts, Strategists
d. Investors, Innovators, Efficiency Experts
d. Investors, Innovators, Efficiency Experts
A "deliverable" includes which of the following characteristics?
a. Represents the conclusion of an assignment, task, or action
b. Displays what the client is paying for
c. Provides recommendations on the next set of actions the client should take
d. All the above
d. All the above
If you were to come into an engagement and a business valuation had already been completed,
there would be no need to complete a personal, financial, business attractiveness and readiness
assessment.
a. True
b. False
b. False
Year over year growth in sales and profit would benefits a company's:
a. Attractiveness
b. Readiness
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, c. Both attractiveness and readiness
d. None of the above
a. Attractiveness
A business attractiveness score of 67% is considered:
a. Average
b. Inaccurate
c. Below average
d. Above average
d. Above average
Why would an owner want to have a business valuation performed on their company?
a. Divorce
b. Ownership transfer to family
c. Installing an ESOP
d. All of the above
d. All of the above
Which of the following is NOT a standard of value when it comes to business valuation?
a. Investment value
b. Hypothetical value
c. Fair market value
d. Fair value
b. Hypothetical value
Fair Market Standard of Value is defined as the price at which the property would change hands
between a "hypothetical" willing buyer and a "hypothetical" willing seller.
a. True
b. False
a. True
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EXAM PREP VERSION 1 2026/2027 WITH
ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS
|CURRENTLY TESTING QUESTIONS AND
SOLUTIONS|ALREADY GRADED A+|NEWEST
|JUST RELEASED!!|GUARANTEED PASS
A _____ gift is one in which the person who received the gift has the unrestricted right to the
immediate possession and use of it.
a. IRA gift
b. ILIT gift
c. Present interest gift
d. Future interest gift
c. Present interest gift
Which of the following statements is not true?
a. All states have an estate tax
b. A descendant's unused federal estate tax exemption may be used by the surviving spouse
c. The most efficient use of the federal estate/gift exemption is during life
d. A gift received by a person is not taxable income
a. All states have an estate tax
The main goal of minimizing wealth tax is to:
a. Increase the amount of earnings placed towards trusts
b. Create equality between both the client's and the IRS's portion of earnings
1|Page
,c. Maximize the client's portion of earnings and minimize the IRS's portion
d. Minimize the client's portion of earning and maximize the IRS's portion
c. Maximize the client's portion of earnings and minimize the IRS's portion
What does the acronym "NING" stand for when looking at income tax planning options?
a. Non-Grantor Incomplete Nevada Trust
b. Nevada Incomplete Non-Grantor Trust
c. Nevada Isolated Non-Grantor Trust
d. Nevada Isolated Non-Grantor Tax
b. Nevada Incomplete Non-Grantor Trust
Which of the following is a disadvantage of an intentionally defective grantor trust (IDGT)?
a. IDGT continues for multiple generations without being subject to federal estate tax
b. Gifts to an IDGT do not trigger capital gains
c. States impose higher taxes on IDGT
d. Client cannot be a beneficiary
d. Client cannot be a beneficiary
A strategy which makes assets difficult or impossible to reach is called:
a. Asset insurance
b. Asset limitation
c. Asset placement
d. Asset protection
d. Asset protection
What are the benefits for the business owner and family for integrating charitable
contributions?
a. Wanting to transfer values and purpose, not just assets
b. Creating intergenerational common ground to collaborate, make joint decisions, gain
confidence, develop/fulfill potential
2|Page
,c. Developing an emotional and functional bridge between wealth, purpose, and society
d. All of the above
d. All of the above
As categorized by the Fisher College of Business at the Ohio State University, what are the three
types of companies in the marketplace?
a. Investors, Analysts, Efficiency Experts
b. Investors, Innovators, Strategists
c. Investors, Analysts, Strategists
d. Investors, Innovators, Efficiency Experts
d. Investors, Innovators, Efficiency Experts
A "deliverable" includes which of the following characteristics?
a. Represents the conclusion of an assignment, task, or action
b. Displays what the client is paying for
c. Provides recommendations on the next set of actions the client should take
d. All the above
d. All the above
If you were to come into an engagement and a business valuation had already been completed,
there would be no need to complete a personal, financial, business attractiveness and readiness
assessment.
a. True
b. False
b. False
Year over year growth in sales and profit would benefits a company's:
a. Attractiveness
b. Readiness
3|Page
, c. Both attractiveness and readiness
d. None of the above
a. Attractiveness
A business attractiveness score of 67% is considered:
a. Average
b. Inaccurate
c. Below average
d. Above average
d. Above average
Why would an owner want to have a business valuation performed on their company?
a. Divorce
b. Ownership transfer to family
c. Installing an ESOP
d. All of the above
d. All of the above
Which of the following is NOT a standard of value when it comes to business valuation?
a. Investment value
b. Hypothetical value
c. Fair market value
d. Fair value
b. Hypothetical value
Fair Market Standard of Value is defined as the price at which the property would change hands
between a "hypothetical" willing buyer and a "hypothetical" willing seller.
a. True
b. False
a. True
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