Estate Planning | Certified Financial
Planner Certification | Professional
Education Program Exam Questions and
Answers Graded A+
Imputed Interest On Gift and Below Market Loans - Correct 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
What is probate? - Correct answer-the dividing and retitling of assets - has nothing
to do with the taxable estate
What are the assets subject to probate? - Correct answer--Sole ownership (singly
owned assets)
-Property held by TIC
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,-Asset where beneficiary is the "estate of the insured"
-Community property (50% attributable to each spouse)
What are the assets that avoid probate? - Correct 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)
What does the form 706 allow? - Correct answer-Estate Tax Return: allows you to
elect portability
-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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,What are the assets subject to being included in the Gross Estate? - Correct 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)
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, How to calc AGE? - Correct answer-Gross Estate LESS funeral expenses,
administration expenses, debts, taxes, and casualty losses
How to get from AGE to the Taxable Estate? - Correct answer-Adjusted Gross
Estate LESS marital deduction and charitable deduction
How to get from the Taxable Estate to the Tax Base? - Correct answer-Taxable
Estate PLUS adjusted taxable gifts (amounts exceeding annual gift exclusion)
How to get from Tax Base to the Tentative Tax? - Correct answer-Tax Base LESS
lifetime exemption amount then times the tax rate
How to get from the Tentative Tax to the NET ESTATE - Correct answer-Tentative
Tax LESS gift taxes paid = NET ESTATE
How is life insurance included in the gross estate? - Correct 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
Charitable giving vehicles are divided into two main types: - Correct answer-
Income to Donor, remainder to Charity → The donor (or another person) gets
income first, then the charity gets what's left.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
Planner Certification | Professional
Education Program Exam Questions and
Answers Graded A+
Imputed Interest On Gift and Below Market Loans - Correct 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
What is probate? - Correct answer-the dividing and retitling of assets - has nothing
to do with the taxable estate
What are the assets subject to probate? - Correct answer--Sole ownership (singly
owned assets)
-Property held by TIC
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,-Asset where beneficiary is the "estate of the insured"
-Community property (50% attributable to each spouse)
What are the assets that avoid probate? - Correct 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)
What does the form 706 allow? - Correct answer-Estate Tax Return: allows you to
elect portability
-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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,What are the assets subject to being included in the Gross Estate? - Correct 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)
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, How to calc AGE? - Correct answer-Gross Estate LESS funeral expenses,
administration expenses, debts, taxes, and casualty losses
How to get from AGE to the Taxable Estate? - Correct answer-Adjusted Gross
Estate LESS marital deduction and charitable deduction
How to get from the Taxable Estate to the Tax Base? - Correct answer-Taxable
Estate PLUS adjusted taxable gifts (amounts exceeding annual gift exclusion)
How to get from Tax Base to the Tentative Tax? - Correct answer-Tax Base LESS
lifetime exemption amount then times the tax rate
How to get from the Tentative Tax to the NET ESTATE - Correct answer-Tentative
Tax LESS gift taxes paid = NET ESTATE
How is life insurance included in the gross estate? - Correct 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
Charitable giving vehicles are divided into two main types: - Correct answer-
Income to Donor, remainder to Charity → The donor (or another person) gets
income first, then the charity gets what's left.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
