FPQP® Module 9 - Estate Planning Financial Paraplanner
Qualified Professional Practice Exam Questions and Verified
Answers for 2025/2026
Which of the following statements regarding estate planning is CORRECT?
A)
Estate planning is not relevant for the owner of a closely held business.
B)
Titling of assets is an important part of the estate planning process.
C)
Estate planning is not relevant for young families with children.
D)
Estate planning is primarily about avoiding estate taxes. - correct answer B)
Titling of assets is an important part of the estate planning process.
Titling of assets is an important part of estate planning because it dictates who receives
the deceased's share or determines that the deceased's share will be distributed, as
decided by the probate process.
Which of these statements concerning the $15,000 (2021) annual gift tax exclusion
amount is CORRECT?
A)
One may gift up to $15,000 to each of an unlimited number of individuals and still be
able to claim an exclusion from gift taxes.
B)
The $15,000 annual exclusion amount is not subject to gift taxes but does reduce the
$11.7 million (2021) exemption amount by $15,000.
C)
The annual exclusion is available only for transfers to donees related to the donor.
D)
, Only one $15,000 exclusion is allowed for a married couple if they file jointly. - correct
answer One may gift up to $15,000 to each of an unlimited number of individuals and
still be able to claim an exclusion from gift taxes.
The $15,000 annual exclusion is per donee, and there is no limit to the number of
individuals that one may give gifts to using the annual exclusion.
Which of the following is an advantage of trusts when planning for incapacity?
A)
Trusts are under the continuing supervision of a court to prevent misappropriation of
property.
B)
Trusts and the authority of a trustee are routinely accepted by financial institutions.
C)
Trusts are usually simple to create and inexpensive to administer.
D)
Trusts put an incapacitated person's financial affairs into public view. - correct answer
B)
Trusts and the authority of a trustee are routinely accepted by financial institutions.
All of the statements regarding trusts are CORRECT except
A)
A testamentary trust becomes operative on the death of the grantor.
B)
A revocable trust allows the trust to be changed by the grantor.
C)
An irrevocable trust prohibits the grantor from terminating the trust without the approval
of the trustee.
D)
An inter vivos trust is operative during the grantor's life. - correct answer An irrevocable
trust prohibits the grantor from terminating the trust without the approval of the trustee.
Qualified Professional Practice Exam Questions and Verified
Answers for 2025/2026
Which of the following statements regarding estate planning is CORRECT?
A)
Estate planning is not relevant for the owner of a closely held business.
B)
Titling of assets is an important part of the estate planning process.
C)
Estate planning is not relevant for young families with children.
D)
Estate planning is primarily about avoiding estate taxes. - correct answer B)
Titling of assets is an important part of the estate planning process.
Titling of assets is an important part of estate planning because it dictates who receives
the deceased's share or determines that the deceased's share will be distributed, as
decided by the probate process.
Which of these statements concerning the $15,000 (2021) annual gift tax exclusion
amount is CORRECT?
A)
One may gift up to $15,000 to each of an unlimited number of individuals and still be
able to claim an exclusion from gift taxes.
B)
The $15,000 annual exclusion amount is not subject to gift taxes but does reduce the
$11.7 million (2021) exemption amount by $15,000.
C)
The annual exclusion is available only for transfers to donees related to the donor.
D)
, Only one $15,000 exclusion is allowed for a married couple if they file jointly. - correct
answer One may gift up to $15,000 to each of an unlimited number of individuals and
still be able to claim an exclusion from gift taxes.
The $15,000 annual exclusion is per donee, and there is no limit to the number of
individuals that one may give gifts to using the annual exclusion.
Which of the following is an advantage of trusts when planning for incapacity?
A)
Trusts are under the continuing supervision of a court to prevent misappropriation of
property.
B)
Trusts and the authority of a trustee are routinely accepted by financial institutions.
C)
Trusts are usually simple to create and inexpensive to administer.
D)
Trusts put an incapacitated person's financial affairs into public view. - correct answer
B)
Trusts and the authority of a trustee are routinely accepted by financial institutions.
All of the statements regarding trusts are CORRECT except
A)
A testamentary trust becomes operative on the death of the grantor.
B)
A revocable trust allows the trust to be changed by the grantor.
C)
An irrevocable trust prohibits the grantor from terminating the trust without the approval
of the trustee.
D)
An inter vivos trust is operative during the grantor's life. - correct answer An irrevocable
trust prohibits the grantor from terminating the trust without the approval of the trustee.
