[CES] Certified Estate and Trust
Specialist Practice Exam
1. What is the primary objective of wealth preservation in estate planning?
A. To maximize current income
B. To ensure assets are protected and maintained for future generations
C. To distribute assets as quickly as possible
D. To avoid all forms of taxation
Answer: B
Explanation: Wealth preservation focuses on protecting and maintaining assets to ensure
they are available for future generations, a fundamental objective of estate planning.
2. Which of the following is NOT a primary goal of estate planning?
A. Asset distribution
B. Wealth preservation
C. Minimization of taxes
D. Increasing short-term profits
Answer: D
Explanation: Increasing short-term profits is not a primary goal of estate planning,
which focuses on long-term objectives like asset distribution, wealth preservation, and
tax minimization.
3. Minimizing taxes in estate planning primarily involves which of the following
strategies?
A. Selling all assets before death
B. Utilizing tax-efficient instruments like trusts and gifts
C. Avoiding the creation of a will
D. Ignoring state tax laws
Answer: B
, [CES] Certified Estate and Trust
Specialist Practice Exam
Explanation: Utilizing tax-efficient instruments such as trusts and gifts helps in
minimizing taxes, which is a key objective in estate planning.
4. Who is primarily responsible for ensuring that a client's estate planning objectives
are met?
A. The attorney
B. The beneficiary
C. The estate planner
D. The probate court
Answer: C
Explanation: The estate planner plays a crucial role in understanding and implementing
strategies to meet the client's estate planning objectives.
5. Which of the following best describes asset distribution in estate planning?
A. The process of accumulating assets during one's lifetime
B. The allocation of assets to beneficiaries upon death
C. The investment of assets in the stock market
D. The liquidation of assets to pay debts
Answer: B
Explanation: Asset distribution involves allocating assets to beneficiaries as per the
estate plan upon the individual's death.
6. Estate planners must align their strategies with the client's objectives. Which of the
following is NOT typically a client objective?
A. Protecting family wealth
B. Reducing legal liabilities
C. Enhancing personal credit score
D. Ensuring smooth transfer of assets
, [CES] Certified Estate and Trust
Specialist Practice Exam
Answer: C
Explanation: Enhancing personal credit score is generally not a direct objective of estate
planning, which focuses more on wealth protection, tax minimization, and smooth asset
transfer.
7. Which of the following roles does an estate planner NOT typically perform?
A. Advising on legal instruments
B. Managing investment portfolios
C. Assisting in wealth transfer strategies
D. Providing healthcare services
Answer: D
Explanation: Providing healthcare services is outside the typical scope of an estate
planner, who primarily advises on legal and financial matters related to estate planning.
8. Wealth preservation strategies may include all EXCEPT:
A. Establishing trusts
B. Gifting assets
C. Taking on high-risk investments
D. Purchasing life insurance
Answer: C
Explanation: High-risk investments are generally avoided in wealth preservation as they
can jeopardize the stability and security of the assets being preserved.
9. Which of the following is a key consideration in the asset distribution phase of estate
planning?
A. Current market trends
B. Beneficiary designations
C. Short-term financial goals
, [CES] Certified Estate and Trust
Specialist Practice Exam
D. Daily cash flow
Answer: B
Explanation: Beneficiary designations are crucial in asset distribution as they determine
who will receive the assets upon the individual's death.
10. Minimizing estate taxes can be achieved through:
A. Ignoring taxable gifts
B. Utilizing the estate tax exemption
C. Increasing the size of the estate
D. Avoiding the use of trusts
Answer: B
Explanation: Utilizing the estate tax exemption allows individuals to transfer a certain
amount of assets tax-free, thereby minimizing estate taxes.
Legal Instruments in Estate Planning
11. What is the primary purpose of a will in estate planning?
A. To create a business entity
B. To outline how assets should be distributed upon death
C. To establish a trust
D. To designate power of attorney
Answer: B
Explanation: A will specifies how an individual's assets should be distributed after their
death, making it a fundamental legal instrument in estate planning.
12. Which type of will allows for changes or revocation during the testator's lifetime?
A. Holographic will
B. Living will
Specialist Practice Exam
1. What is the primary objective of wealth preservation in estate planning?
A. To maximize current income
B. To ensure assets are protected and maintained for future generations
C. To distribute assets as quickly as possible
D. To avoid all forms of taxation
Answer: B
Explanation: Wealth preservation focuses on protecting and maintaining assets to ensure
they are available for future generations, a fundamental objective of estate planning.
2. Which of the following is NOT a primary goal of estate planning?
A. Asset distribution
B. Wealth preservation
C. Minimization of taxes
D. Increasing short-term profits
Answer: D
Explanation: Increasing short-term profits is not a primary goal of estate planning,
which focuses on long-term objectives like asset distribution, wealth preservation, and
tax minimization.
3. Minimizing taxes in estate planning primarily involves which of the following
strategies?
A. Selling all assets before death
B. Utilizing tax-efficient instruments like trusts and gifts
C. Avoiding the creation of a will
D. Ignoring state tax laws
Answer: B
, [CES] Certified Estate and Trust
Specialist Practice Exam
Explanation: Utilizing tax-efficient instruments such as trusts and gifts helps in
minimizing taxes, which is a key objective in estate planning.
4. Who is primarily responsible for ensuring that a client's estate planning objectives
are met?
A. The attorney
B. The beneficiary
C. The estate planner
D. The probate court
Answer: C
Explanation: The estate planner plays a crucial role in understanding and implementing
strategies to meet the client's estate planning objectives.
5. Which of the following best describes asset distribution in estate planning?
A. The process of accumulating assets during one's lifetime
B. The allocation of assets to beneficiaries upon death
C. The investment of assets in the stock market
D. The liquidation of assets to pay debts
Answer: B
Explanation: Asset distribution involves allocating assets to beneficiaries as per the
estate plan upon the individual's death.
6. Estate planners must align their strategies with the client's objectives. Which of the
following is NOT typically a client objective?
A. Protecting family wealth
B. Reducing legal liabilities
C. Enhancing personal credit score
D. Ensuring smooth transfer of assets
, [CES] Certified Estate and Trust
Specialist Practice Exam
Answer: C
Explanation: Enhancing personal credit score is generally not a direct objective of estate
planning, which focuses more on wealth protection, tax minimization, and smooth asset
transfer.
7. Which of the following roles does an estate planner NOT typically perform?
A. Advising on legal instruments
B. Managing investment portfolios
C. Assisting in wealth transfer strategies
D. Providing healthcare services
Answer: D
Explanation: Providing healthcare services is outside the typical scope of an estate
planner, who primarily advises on legal and financial matters related to estate planning.
8. Wealth preservation strategies may include all EXCEPT:
A. Establishing trusts
B. Gifting assets
C. Taking on high-risk investments
D. Purchasing life insurance
Answer: C
Explanation: High-risk investments are generally avoided in wealth preservation as they
can jeopardize the stability and security of the assets being preserved.
9. Which of the following is a key consideration in the asset distribution phase of estate
planning?
A. Current market trends
B. Beneficiary designations
C. Short-term financial goals
, [CES] Certified Estate and Trust
Specialist Practice Exam
D. Daily cash flow
Answer: B
Explanation: Beneficiary designations are crucial in asset distribution as they determine
who will receive the assets upon the individual's death.
10. Minimizing estate taxes can be achieved through:
A. Ignoring taxable gifts
B. Utilizing the estate tax exemption
C. Increasing the size of the estate
D. Avoiding the use of trusts
Answer: B
Explanation: Utilizing the estate tax exemption allows individuals to transfer a certain
amount of assets tax-free, thereby minimizing estate taxes.
Legal Instruments in Estate Planning
11. What is the primary purpose of a will in estate planning?
A. To create a business entity
B. To outline how assets should be distributed upon death
C. To establish a trust
D. To designate power of attorney
Answer: B
Explanation: A will specifies how an individual's assets should be distributed after their
death, making it a fundamental legal instrument in estate planning.
12. Which type of will allows for changes or revocation during the testator's lifetime?
A. Holographic will
B. Living will
