CERTIFIED ESTATE PLANNER (CEP) EXAM
STUDY GUIDE 2026 COMPLETE QUESTIONS
WITH CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS
<RECENT VERSION>
1. Which of the following is included in the definition of estate planning?
Asset management.
Accumulation of wealth.
Asset preservation.
a. 1 only.
b. 1 and 2.
c. 2 and 3.
d. 1, 2, and 3. - ANSWER ✔ d. 1, 2, and 3.
2. Which of the following does not need estate planning?
a. Charles, age 30, married with two minor children, and a net worth of
$375,000.
b. Sheila, 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. - ANSWER ✔ d. All of the
above need estate planning.
3. Who on the estate planning team usually calculates the adjusted basis of
assets and addresses tax issues?
a. Licensed attorney.
b. Certified Public Accountant (CPA).
c. Financial planner.
, d. Trust officer. - ANSWER ✔ b. Certified Public Accountant (CPA).
4. Joe is a financial planner in the state of Iowa. Although he attended one year
of law school, Joe 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. - ANSWER ✔ a. Drafting wills,
trust documents, and powers of attorney.
5. Jimmy would like to meet with you regarding his estate plan. Jimmy is 55-
years-old, and currently has an estate that would be subject to estate tax. His
wife died of lung cancer last year. Jimmy has three children, ages 23, 26,
and 32, and one grandchild, age 4. He does not have any dependents. Which
of the following options would be the least likely reason for Jimmy to have
an estate plan?
a. Minimize estate and transfer taxes.
b. Minimize costs.
c. Plan for his children.
d. Plan for his incapacity. - ANSWER ✔ c. Plan for his children.
6. Imputed Interest On Gift and Below Market Loans - ANSWER ✔ •Creates
phantom income for the lender - Taxed as income to the lender
•Any imputed interest will be considered a gift for gift tax consequences
from lender to borrower (can be eligible for annual exclusion)
•Can be deducted as an itemized expense for the borrower if a personal
residence was used as collateral for the loan
7. What is probate? - ANSWER ✔ the dividing and retitling of assets - has
nothing to do with the taxable estate
,8. What are the assets subject to probate? - ANSWER ✔ -Sole ownership
(singly owned assets)
-Property held by TIC
-Asset where beneficiary is the "estate of the insured"
-Community property (50% attributable to each spouse)
9. What are the assets that avoid probate? - ANSWER ✔ -JTWROS
-TE or TBE
-POD, TOD, or Totten Trust
-Transfer by named beneficiary for retirement plans, IRAs, life insurance,
and annuities
-Trusts (Revocable and Irrevocable)
10.What does the form 706 allow? - ANSWER ✔ Estate Tax Return: allows
you to elect portability
11.-this is where you will determine if there is a taxable estate above the
exemption amount (15 mm in 2025 or 30mm couple)
-tax rate after the exemption is used is up to 40%
Can use the DoD or Alternate Valuation Date (6 months post death) to value
the estate
12.What are the assets subject to being included in the Gross Estate? -
ANSWER ✔ -Property owned at death (stocks, bonds, retirement accounts,
autos, clothes, jewelry, art, etc.)
-Dower and Curtsey (the right to land ownership from husband to wife and
wife to husband)
-Gift taxes paid in the last 3 years (3-year look back on gift taxes paid)
-Transfers with a retained life interest
-Transfers with a reversionary interest
-Revocable Transfers (also applied to enjoyment of property or income from
property)
, -Annuities (straight-life not included in gross estate / survivorship includes
FMV at time of death)
-Jointly owned property (JTWROS, TBE)
-General Powers
-Proceeds from life insurance
-QTIP property (assets in first to die estate)
13.How to calc AGE? - ANSWER ✔ Gross Estate LESS funeral expenses,
administration expenses, debts, taxes, and casualty losses
14.How to get from AGE to the Taxable Estate? - ANSWER ✔ Adjusted Gross
Estate LESS marital deduction and charitable deduction
15.How to get from the Taxable Estate to the Tax Base? - ANSWER ✔ Taxable
Estate PLUS adjusted taxable gifts (amounts exceeding annual gift
exclusion)
16.How to get from Tax Base to the Tentative Tax? - ANSWER ✔ Tax Base
LESS lifetime exemption amount then times the tax rate
17.How to get from the Tentative Tax to the NET ESTATE - ANSWER ✔
Tentative Tax LESS gift taxes paid = NET ESTATE
18.How is life insurance included in the gross estate? - ANSWER ✔ Life
insurance is included in your gross estate IF the beneficiary is your estate, IF
the descendant at death is the owner of the policy EVEN IF THERE IS A
VALID BENEFICIARY, and when the insured transferred a policy with the
incident of ownership within 3 years of death
STUDY GUIDE 2026 COMPLETE QUESTIONS
WITH CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS
<RECENT VERSION>
1. Which of the following is included in the definition of estate planning?
Asset management.
Accumulation of wealth.
Asset preservation.
a. 1 only.
b. 1 and 2.
c. 2 and 3.
d. 1, 2, and 3. - ANSWER ✔ d. 1, 2, and 3.
2. Which of the following does not need estate planning?
a. Charles, age 30, married with two minor children, and a net worth of
$375,000.
b. Sheila, 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. - ANSWER ✔ d. All of the
above need estate planning.
3. Who on the estate planning team usually calculates the adjusted basis of
assets and addresses tax issues?
a. Licensed attorney.
b. Certified Public Accountant (CPA).
c. Financial planner.
, d. Trust officer. - ANSWER ✔ b. Certified Public Accountant (CPA).
4. Joe is a financial planner in the state of Iowa. Although he attended one year
of law school, Joe 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. - ANSWER ✔ a. Drafting wills,
trust documents, and powers of attorney.
5. Jimmy would like to meet with you regarding his estate plan. Jimmy is 55-
years-old, and currently has an estate that would be subject to estate tax. His
wife died of lung cancer last year. Jimmy has three children, ages 23, 26,
and 32, and one grandchild, age 4. He does not have any dependents. Which
of the following options would be the least likely reason for Jimmy to have
an estate plan?
a. Minimize estate and transfer taxes.
b. Minimize costs.
c. Plan for his children.
d. Plan for his incapacity. - ANSWER ✔ c. Plan for his children.
6. Imputed Interest On Gift and Below Market Loans - ANSWER ✔ •Creates
phantom income for the lender - Taxed as income to the lender
•Any imputed interest will be considered a gift for gift tax consequences
from lender to borrower (can be eligible for annual exclusion)
•Can be deducted as an itemized expense for the borrower if a personal
residence was used as collateral for the loan
7. What is probate? - ANSWER ✔ the dividing and retitling of assets - has
nothing to do with the taxable estate
,8. What are the assets subject to probate? - ANSWER ✔ -Sole ownership
(singly owned assets)
-Property held by TIC
-Asset where beneficiary is the "estate of the insured"
-Community property (50% attributable to each spouse)
9. What are the assets that avoid probate? - ANSWER ✔ -JTWROS
-TE or TBE
-POD, TOD, or Totten Trust
-Transfer by named beneficiary for retirement plans, IRAs, life insurance,
and annuities
-Trusts (Revocable and Irrevocable)
10.What does the form 706 allow? - ANSWER ✔ Estate Tax Return: allows
you to elect portability
11.-this is where you will determine if there is a taxable estate above the
exemption amount (15 mm in 2025 or 30mm couple)
-tax rate after the exemption is used is up to 40%
Can use the DoD or Alternate Valuation Date (6 months post death) to value
the estate
12.What are the assets subject to being included in the Gross Estate? -
ANSWER ✔ -Property owned at death (stocks, bonds, retirement accounts,
autos, clothes, jewelry, art, etc.)
-Dower and Curtsey (the right to land ownership from husband to wife and
wife to husband)
-Gift taxes paid in the last 3 years (3-year look back on gift taxes paid)
-Transfers with a retained life interest
-Transfers with a reversionary interest
-Revocable Transfers (also applied to enjoyment of property or income from
property)
, -Annuities (straight-life not included in gross estate / survivorship includes
FMV at time of death)
-Jointly owned property (JTWROS, TBE)
-General Powers
-Proceeds from life insurance
-QTIP property (assets in first to die estate)
13.How to calc AGE? - ANSWER ✔ Gross Estate LESS funeral expenses,
administration expenses, debts, taxes, and casualty losses
14.How to get from AGE to the Taxable Estate? - ANSWER ✔ Adjusted Gross
Estate LESS marital deduction and charitable deduction
15.How to get from the Taxable Estate to the Tax Base? - ANSWER ✔ Taxable
Estate PLUS adjusted taxable gifts (amounts exceeding annual gift
exclusion)
16.How to get from Tax Base to the Tentative Tax? - ANSWER ✔ Tax Base
LESS lifetime exemption amount then times the tax rate
17.How to get from the Tentative Tax to the NET ESTATE - ANSWER ✔
Tentative Tax LESS gift taxes paid = NET ESTATE
18.How is life insurance included in the gross estate? - ANSWER ✔ Life
insurance is included in your gross estate IF the beneficiary is your estate, IF
the descendant at death is the owner of the policy EVEN IF THERE IS A
VALID BENEFICIARY, and when the insured transferred a policy with the
incident of ownership within 3 years of death
