CFP Estate Planning Exam Latest
Update 2025/2026 GRADED A+
Which of the following is not an estate planning goal?
a. Maximizing the gross estate.
b. Minimizing transfer taxes.
c. Providing for liquidity at death.
d. Fulfilling client's healthcare decisions. - correct answera. Maximizing the gross estate.
Of the following, who should generally be a member of the estate planning team?1.
Attorney.2. Certified Public Accountant (CPA).3. Life insurance consultant.4. Loan
officer.
A)1 and 2.
B)1 and 4.
C)1, 2, and 3.
D)1, 2, 3, and 4. - correct answerC)1, 2, and 3.
Glen's will leaves all of his property to his wife. If she does not survive him by more than
eight months, the property will transfer to Glen's only son. Glen dies on April 13 and his
wife dies the following January 12. Of the following statements, which is true?
A)Glen's property will transfer to his son.
B)Glen's property will not transfer to his wife.
C)Glen's property will transfer to his wife, but the property will not be eligible for the
unlimited marital deduction in Glen's estate.
D)Glen's property will transfer to his wife and the property will be eligible for the
unlimited marital deduction in Glen's estate. - correct answerC)Glen's property will
transfer to his wife, but the property will not be eligible for the unlimited marital
deduction in Glen's estate.
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. - correct answerA)Drafting wills, trust documents,
and powers of attorney.
Which of the following statements is the best definition of estate planning?
A)Estate planning is the process of accumulation, management, conservation, and
transfer of wealth considering legal, tax, and personal objectives.
, B)Estate planning is the management, conservation, and transfer of wealth considering
estate tax transfer costs.
C)Estate planning is the management, conservation, and transfer of wealth considering
legal, tax, and personal objectives.
D)Estate planning is the process of accumulation, management, conservation, and
transfer of wealth considering estate and generation-skipping transfer tax costs. -
correct answerA)Estate planning is the process of accumulation, management,
conservation, and transfer of wealth considering legal, tax, and personal objectives.
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. - correct answerD)All of the above need estate
planning.
Making arrangements to deal with the possibility of physical or mental incapacity is an
important area of estate planning. Which of the following arrangements may be used to
deal with such unexpected incapacity?
1. A springing durable power of attorney for property.
2. A durable power of attorney for health care.
3. A codicil.
4. A living will.
a. 1 only.
b. 2 and 4.
c. 1, 2, and 4.
d. 1, 2, 3, and 4. - correct answerc. 1, 2, and 4.
Martin has given his father, Edward, a springing durable power of attorney over his real
estate holdings. The power of attorney springs if Martin is ever out of the country. Of the
following statements regarding this power, which is not true?
A)If Martin becomes disabled while travelling in Italy, Edward can continue making
decisions regarding the real estate.
B)If Martin dies while travelling in Taiwan, Edward can continue making decisions
regarding the real estate under the power of attorney.
C)Martin can revoke the power at any time.
D)Edward can do anything that Martin can do with respect to the real estate. - correct
answerB)If Martin dies while travelling in Taiwan, Edward can continue making
decisions regarding the real estate under the power of attorney.
Alice recently passed away. She had three children, Brian, Cate, and David. Brian has
two children, Cate has 4 children, and David has one child. Brian died before Alice.
What is the distribution for Alice's estate based on the per stirpes method?
A)Brian's two children, Cate and David each receive 1/4 of the estate.
B)Brian's two children receive 1/6 each and Cate and David receive 1/3 each.
Update 2025/2026 GRADED A+
Which of the following is not an estate planning goal?
a. Maximizing the gross estate.
b. Minimizing transfer taxes.
c. Providing for liquidity at death.
d. Fulfilling client's healthcare decisions. - correct answera. Maximizing the gross estate.
Of the following, who should generally be a member of the estate planning team?1.
Attorney.2. Certified Public Accountant (CPA).3. Life insurance consultant.4. Loan
officer.
A)1 and 2.
B)1 and 4.
C)1, 2, and 3.
D)1, 2, 3, and 4. - correct answerC)1, 2, and 3.
Glen's will leaves all of his property to his wife. If she does not survive him by more than
eight months, the property will transfer to Glen's only son. Glen dies on April 13 and his
wife dies the following January 12. Of the following statements, which is true?
A)Glen's property will transfer to his son.
B)Glen's property will not transfer to his wife.
C)Glen's property will transfer to his wife, but the property will not be eligible for the
unlimited marital deduction in Glen's estate.
D)Glen's property will transfer to his wife and the property will be eligible for the
unlimited marital deduction in Glen's estate. - correct answerC)Glen's property will
transfer to his wife, but the property will not be eligible for the unlimited marital
deduction in Glen's estate.
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. - correct answerA)Drafting wills, trust documents,
and powers of attorney.
Which of the following statements is the best definition of estate planning?
A)Estate planning is the process of accumulation, management, conservation, and
transfer of wealth considering legal, tax, and personal objectives.
, B)Estate planning is the management, conservation, and transfer of wealth considering
estate tax transfer costs.
C)Estate planning is the management, conservation, and transfer of wealth considering
legal, tax, and personal objectives.
D)Estate planning is the process of accumulation, management, conservation, and
transfer of wealth considering estate and generation-skipping transfer tax costs. -
correct answerA)Estate planning is the process of accumulation, management,
conservation, and transfer of wealth considering legal, tax, and personal objectives.
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. - correct answerD)All of the above need estate
planning.
Making arrangements to deal with the possibility of physical or mental incapacity is an
important area of estate planning. Which of the following arrangements may be used to
deal with such unexpected incapacity?
1. A springing durable power of attorney for property.
2. A durable power of attorney for health care.
3. A codicil.
4. A living will.
a. 1 only.
b. 2 and 4.
c. 1, 2, and 4.
d. 1, 2, 3, and 4. - correct answerc. 1, 2, and 4.
Martin has given his father, Edward, a springing durable power of attorney over his real
estate holdings. The power of attorney springs if Martin is ever out of the country. Of the
following statements regarding this power, which is not true?
A)If Martin becomes disabled while travelling in Italy, Edward can continue making
decisions regarding the real estate.
B)If Martin dies while travelling in Taiwan, Edward can continue making decisions
regarding the real estate under the power of attorney.
C)Martin can revoke the power at any time.
D)Edward can do anything that Martin can do with respect to the real estate. - correct
answerB)If Martin dies while travelling in Taiwan, Edward can continue making
decisions regarding the real estate under the power of attorney.
Alice recently passed away. She had three children, Brian, Cate, and David. Brian has
two children, Cate has 4 children, and David has one child. Brian died before Alice.
What is the distribution for Alice's estate based on the per stirpes method?
A)Brian's two children, Cate and David each receive 1/4 of the estate.
B)Brian's two children receive 1/6 each and Cate and David receive 1/3 each.
