ESTATE PLANNING CERTIFICATION SCRIPT
2026 QUESTIONS WITH SOLUTIONS
GRADED A+
◍ What is lack of liquidity?.
Answer: Not enough cash to pay estate taxes, debts, and expenses.
◍ What is intestacy?.
Answer: Dying without a valid will.
◍ What is value stabilization and maximization?.
Answer: Protecting and increasing the value of assets like businesses.
◍ Does tenancy in common go through probate?.
Answer: Yes.
◍ What is one financial planner responsibility?.
Answer: Review wills, trusts, assets, and insurance.
◍ What does a will do?.
Answer: Directs asset distribution.
◍ Why is choosing the right executor important?.
Answer: They must be trustworthy, capable, and willing to serve.
◍ Do beneficiary accounts go through probate?.
Answer: No.
◍ Why does marital status matter?.
Answer: Impacts inheritance rights.
◍ What is unauthorized practice of law?.
Answer: Giving legal advice without license.
◍ What is improper disposition of assets?.
, Answer: Assets go to the wrong person, at the wrong time, or in the wrong
way.
◍ What is the risk of liquidity shortfall?.
Answer: Forced asset sale.
◍ What is Step 7 in the estate planning process?.
Answer: Review and update.
◍ What is one key duty of an executor?.
Answer: Collect assets, pay debts, and distribute property.
◍ How does risk tolerance affect planning?.
Answer: Affects planning strategies used.
◍ What is controlled estate planning?.
Answer: A systematic process to uncover problems and provide solutions in
clients' L.I.V.E.S.
◍ What is estate planning?.
Answer: Planning the accumulation, conservation, and distribution of an
estate to meet personal tax and non-tax goals.
◍ What is one disadvantage of joint tenancy?.
Answer: It can cause liquidity problems because it bypasses the estate.
◍ What do transaction costs include?.
Answer: Lawyers, accountants, court.
◍ Why are good records important?.
Answer: They help the executor manage and distribute the estate efficiently.
◍ What are excessive transfer costs?.
Answer: High estate taxes and fees that reduce estate value.
◍ What does
L. I.
V. E.
S. stand for?.
2026 QUESTIONS WITH SOLUTIONS
GRADED A+
◍ What is lack of liquidity?.
Answer: Not enough cash to pay estate taxes, debts, and expenses.
◍ What is intestacy?.
Answer: Dying without a valid will.
◍ What is value stabilization and maximization?.
Answer: Protecting and increasing the value of assets like businesses.
◍ Does tenancy in common go through probate?.
Answer: Yes.
◍ What is one financial planner responsibility?.
Answer: Review wills, trusts, assets, and insurance.
◍ What does a will do?.
Answer: Directs asset distribution.
◍ Why is choosing the right executor important?.
Answer: They must be trustworthy, capable, and willing to serve.
◍ Do beneficiary accounts go through probate?.
Answer: No.
◍ Why does marital status matter?.
Answer: Impacts inheritance rights.
◍ What is unauthorized practice of law?.
Answer: Giving legal advice without license.
◍ What is improper disposition of assets?.
, Answer: Assets go to the wrong person, at the wrong time, or in the wrong
way.
◍ What is the risk of liquidity shortfall?.
Answer: Forced asset sale.
◍ What is Step 7 in the estate planning process?.
Answer: Review and update.
◍ What is one key duty of an executor?.
Answer: Collect assets, pay debts, and distribute property.
◍ How does risk tolerance affect planning?.
Answer: Affects planning strategies used.
◍ What is controlled estate planning?.
Answer: A systematic process to uncover problems and provide solutions in
clients' L.I.V.E.S.
◍ What is estate planning?.
Answer: Planning the accumulation, conservation, and distribution of an
estate to meet personal tax and non-tax goals.
◍ What is one disadvantage of joint tenancy?.
Answer: It can cause liquidity problems because it bypasses the estate.
◍ What do transaction costs include?.
Answer: Lawyers, accountants, court.
◍ Why are good records important?.
Answer: They help the executor manage and distribute the estate efficiently.
◍ What are excessive transfer costs?.
Answer: High estate taxes and fees that reduce estate value.
◍ What does
L. I.
V. E.
S. stand for?.
