Free CFP Exam Estate Planning Practice Questions
Estate planning on the CFP exam tests wills, trusts (revocable, irrevocable, bypass, QTIP), estate and gift tax calculations, gifting strategies, and wealth transfer techniques for various family situations (CFP Board).
Sample Questions
Question 1
Easy
The 2026 annual gift exclusion per donee is:
Solution
C is correct.
The 2026 annual gift exclusion is per donee. This amount continues to be indexed for inflation under existing law; it was not specifically modified by OBBBA. Gifts at or below the annual exclusion do not use the unified lifetime exemption and do not require filing Form 709. Gift-splitting between spouses doubles the exclusion to per donee.
The 2026 annual gift exclusion is per donee. This amount continues to be indexed for inflation under existing law; it was not specifically modified by OBBBA. Gifts at or below the annual exclusion do not use the unified lifetime exemption and do not require filing Form 709. Gift-splitting between spouses doubles the exclusion to per donee.
Question 2
Medium
Which of the following is a requirement for a pour-over will to function properly?
Solution
B is correct.
A pour-over will directs that assets passing through the will at death be transferred ('poured over') into a revocable living trust. For this to function, the trust must be in existence at the time of the testator's death (or in some jurisdictions, be created by the will itself under the Uniform Testamentary Additions to Trusts Act).
A pour-over will directs that assets passing through the will at death be transferred ('poured over') into a revocable living trust. For this to function, the trust must be in existence at the time of the testator's death (or in some jurisdictions, be created by the will itself under the Uniform Testamentary Additions to Trusts Act).
Question 3
Hard
A letter of intent in the context of special needs planning is best described as:
Solution
A is correct.
A letter of intent is a non-binding but critically important document that parents or caregivers prepare to guide future caregivers, guardians, and trustees. It typically includes information about the disabled individual's medical history, daily routines, behavioral patterns, social activities, dietary needs, and the family's wishes for quality of life. While not legally enforceable, it provides essential context that legal documents alone cannot capture.
A letter of intent is a non-binding but critically important document that parents or caregivers prepare to guide future caregivers, guardians, and trustees. It typically includes information about the disabled individual's medical history, daily routines, behavioral patterns, social activities, dietary needs, and the family's wishes for quality of life. While not legally enforceable, it provides essential context that legal documents alone cannot capture.