Free CFP Estate Planning Practice Questions (2026)

You're likely approaching CFP Estate Planning (CFP6) by meticulously reviewing rules: the annual gift tax exclusion, portability elections, trust types, and tax implications. This is vital, but it's also where many candidates stumble, falling into the trap of memorizing mechanics without truly grasping the strategic why behind each planning tool. The CFP Board doesn't just test your recall; they test your judgment in applying these rules to complex client scenarios.

CFP Estate Planning (CFP6) practice questions are crucial for mastering the strategic application of complex concepts like wills, trusts, and tax rules. They build critical thinking, expose common traps, and train you to apply judgment, not just recall, ensuring you can identify optimal client solutions for the 2026 exam.

Why Practice Questions Are Non-Negotiable for CFP Estate Planning

Passing the CFP exam isn't about how much you know, but how well you apply what you know under pressure. Estate planning, in particular, demands this nuanced application. You can read every textbook, highlight every rule, and still struggle if you haven't actively engaged with the material.

Here’s why practice questions are your most powerful study tool:

• Correlation with Pass Rates: Consistently, candidates who dedicate significant time to practice questions — often 3,000 or more across all knowledge areas — demonstrate higher pass rates. This isn't just about repetition; it's about conditioning your brain to dissect scenarios and select the best answer, not just a plausible one.
• Active vs. Passive Learning: Rereading notes or watching lectures is passive. Answering questions is active. It forces retrieval, analysis, and decision-making, cementing concepts far more effectively than any other method.
• Identifying Weak Areas: When you consistently miss questions on, say, Generation-Skipping Transfer (GST) tax exemptions or the nuances of a Qualified Terminable Interest Property (QTIP) trust, that's a clear signal. Practice questions illuminate precisely where your understanding is fuzzy, allowing you to target your review. This precision saves you valuable study time.
• Building Exam Stamina: The CFP exam is a marathon. Simulating exam conditions with timed practice questions builds the mental endurance you'll need to stay focused, manage your time, and think clearly through hours of complex scenarios.
• Mastering the "CFP Board Way" of Thinking: The Board has a specific way of phrasing questions and expecting answers. Practice questions, especially those designed to mimic the actual exam, help you internalize this style and recognize common traps.

If you're serious about passing, practice questions are non-negotiable. It's how you translate theoretical knowledge into practical, exam-ready expertise. Ready to try some? Try VoraPrep's free CFP practice questions to get a feel for our question quality.

10 Free CFP Estate Planning Practice Questions

Here are ten practice questions designed to test your understanding of key Estate Planning concepts for the 2026 CFP exam. Remember, the goal isn't just to find the right answer, but to understand why it's right and why the other options are tempting but incorrect.

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Question 1: Gross Estate Inclusion

Amelia, a single individual, established an irrevocable trust five years ago, naming her children as beneficiaries. She transferred $1,000,000 into the trust at its inception. Amelia retained the right to remove and replace the independent trustee with another independent trustee. She also retained the right to vote the stock held within the trust, but not to receive income or principal. At the time of her death, the trust assets were valued at $1,800,000. Amelia had no other assets.

Which of the following amounts will be included in Amelia's gross estate for federal estate tax purposes?

Explanation: The Trap: Many candidates immediately think "irrevocable trust" means exclusion from the gross estate. They might also fixate on the initial transfer amount. However, certain retained powers can pull assets back into the grantor's estate. The Rule: Under IRC Section 2036 (Transfers with Retained Life Estate) and 2038 (Revocable Transfers), if a grantor retains certain powers over an irrevocable trust, the trust assets can be included in their gross estate. Specifically, retaining the right to vote stock transferred to a trust (Section 2036(b)) or retaining the power to remove and replace an independent trustee (if that power is effectively equivalent to retaining significant control over beneficial enjoyment) can trigger inclusion. The key here is the retained power to vote stock, which is explicitly called out in Section 2036(b). Why A is wrong: An irrevocable trust doesn't automatically exclude assets if the grantor retains certain powers. Why B is wrong: This only considers the initial transfer, not the appreciated value at death, and incorrectly assumes some inclusion but not the full amount. Why D is wrong: If included under 2036 or 2038, the entire fair market value of the assets at the date of death (or alternate valuation date) is included, not just the appreciation. Correct Answer: C. $1,800,000 Because Amelia retained the right to vote the stock transferred to the irrevocable trust, the entire fair market value of the trust assets at her death is included in her gross estate under IRC Section 2036(b). The right to remove and replace an independent trustee with another independent trustee, without the power to name oneself, is generally not an estate inclusion trigger on its own, but the stock voting right definitely is.

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Question 2: Gift Tax Annual Exclusion

In 2026, John and Mary, a married couple, want to make gifts to their three adult children: Alex, Beth, and Chris. They decide to gift $38,000 to Alex, $20,000 to Beth, and $10,000 to Chris. Assuming they elect gift splitting and have not used any of their lifetime exclusion, what is the total taxable gift for John and Mary for 2026? (Assume the annual gift tax exclusion for 2026 is $19,000 per donee per donor).

Explanation: The Trap: Candidates might forget about gift splitting, miscalculate the total annual exclusion available, or incorrectly apply the exclusion to the total gift rather than per donee. The Rule: For 2026, the annual gift tax exclusion is $19,000 per donee. A married couple can elect to split gifts, effectively allowing each spouse to use their annual exclusion for gifts made by either spouse. This doubles the exclusion to $38,000 per donee per year from the couple. Any amount gifted above this combined exclusion is a taxable gift, which reduces the donor's lifetime gift and estate tax exemption. Worked Example:

1. Calculate total gifts made:

• Alex: $38,000
• Beth: $20,000
• Chris: $10,000
• Total gifts: $38,000 + $20,000 + $10,000 = $68,000

1. Calculate total annual exclusion available (with gift splitting):

• Per donee exclusion from couple: $19,000 (John) + $19,000 (Mary) = $38,000
• Alex: $38,000 (fully covered)
• Beth: $20,000 (fully covered, $18,000 unused exclusion)
• Chris: $10,000 (fully covered, $28,000 unused exclusion)
• Total exclusion used: $38,000 (Alex) + $20,000 (Beth) + $10,000 (Chris) = $68,000

1. Calculate taxable gifts:

• Alex: $38,000 gifted - $38,000 exclusion = $0 taxable
• Beth: $20,000 gifted - $38,000 exclusion = $0 taxable
• Chris: $10,000 gifted - $38,000 exclusion = $0 taxable
• Total taxable gift = $0

Why B, C, D are wrong: These answers result from miscalculations of the available exclusion, either by not applying gift splitting, or by applying the exclusion incorrectly. For example, if gift splitting wasn't elected, John would have made a $38,000 gift to Alex, using his $19,000 exclusion and leaving a $19,000 taxable gift for Alex alone. But the question explicitly states they elect gift splitting. Correct Answer: A. $0 With gift splitting, John and Mary can each use their $19,000 annual exclusion for each child, totaling $38,000 per child. Since no child received more than $38,000, there are no taxable gifts.

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Question 3: Basis of Inherited Property

Sarah inherited a piece of real estate from her grandmother, Eleanor, who passed away in March 2026. Eleanor originally purchased the property in 1990 for $100,000. At the time of Eleanor's death, the fair market value (FMV) of the property was $500,000. Sarah sold the property six months later for $520,000.

What is Sarah's capital gain on the sale of the inherited property?

Explanation: The Trap: The most common mistake here is confusing the "step-up in basis" rule for inherited property with the "carryover basis" rule for gifted property. Candidates might incorrectly use the grandmother's original basis. The Rule: Property inherited from a decedent generally receives a "step-up in basis" to its fair market value (FMV) at the date of the decedent's death (or the alternate valuation date, if elected). This means the heir's basis is the FMV at the time of inheritance, not the decedent's original basis. For inherited property, the holding period is automatically considered long-term, regardless of how long the property was actually held by the decedent or the heir. Why B, C, D are wrong: These answers result from using the original basis or miscalculating the gain. For example, $420,000 ($520,000 - $100,000) would be the gain if Sarah inherited Eleanor's original basis. Correct Answer: A. $20,000 Sarah's basis in the inherited property is the FMV at Eleanor's death, which is $500,000. When Sarah sells the property for $520,000, her capital gain is $520,000 (sale price) - $500,000 (stepped-up basis) = $20,000.

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Question 4: Durable Power of Attorney vs. Springing Power

Which of the following statements accurately describes a key difference between a Durable Power of Attorney (DPOA) and a Springing Power of Attorney?

Explanation: The Trap: The word "durable" can be misleading if not understood in its legal context. Some might confuse it with "irrevocable" or misunderstand the timing of effectiveness. The Rule: A Durable Power of Attorney (DPOA) grants an agent authority to act on behalf of the principal and remains effective even if the principal becomes incapacitated. It is typically effective immediately upon signing unless otherwise specified. A Springing Power of Attorney also remains effective upon incapacity, but its effectiveness "springs" into action only upon the occurrence of a specific event or condition, most commonly the principal's incapacity as certified by a physician. Both types can be revoked by a competent principal. Both can cover financial matters, and a separate Durable Power of Attorney for Healthcare (or Healthcare Proxy) is typically used for medical decisions. Why B is wrong: Both types are primarily for financial/legal matters. Healthcare decisions are typically covered by a specific healthcare POA. Why C is wrong: This describes a general (non-durable) power of attorney. Both DPOA and Springing POA are designed to continue upon incapacity. Why D is wrong: Both a DPOA and a Springing POA are revocable by a competent principal. "Irrevocable" refers to a power of attorney coupled with an interest, which is a different concept. Correct Answer: A. A DPOA is effective immediately upon signing, while a Springing POA becomes effective upon a specified event or condition. This is the fundamental distinction between the two types regarding their activation.

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Question 5: Portability Election

Harold and Wilma are married. Harold passed away in 2026 with a taxable estate of $3,000,000. He had made no prior taxable gifts. Wilma is concerned about her future estate tax liability. The federal estate tax exemption for 2026 is $13,610,000 per individual.

What action should Wilma's financial planner recommend regarding Harold's unused exemption?

Explanation: The Trap: The most common trap here is assuming that because Harold's estate is well below his individual exemption, there's no need for action. However, the unused portion of his exemption can be incredibly valuable to Wilma. Also, confusing portability with traditional bypass trust planning is a common error. The Rule: The "portability" provision allows a surviving spouse to use any unused portion of their deceased spouse's federal estate tax exemption (the Deceased Spousal Unused Exclusion, or DSUE amount). To claim portability, the executor of the deceased spouse's estate must file a federal estate tax return (Form 706) within nine months of death (with a six-month extension available), even if no estate tax is due. This election allows the surviving spouse to add the DSUE amount to their own exemption, potentially significantly increasing their future estate tax-free transfers. Why A is wrong: While no estate tax is due on Harold's estate, failing to make the portability election would forfeit his unused exemption for Wilma's future use. Why B is wrong: Disclaiming assets can be part of post-mortem planning but is not the mechanism for claiming portability. Disclaimers typically redirect assets to other beneficiaries. Why D is wrong: A Bypass Trust (also known as a Credit Shelter Trust or B Trust) is a traditional strategy to utilize the deceased spouse's exemption by placing assets into an irrevocable trust for beneficiaries (often the surviving spouse and children), thereby keeping those assets out of the surviving spouse's estate. While effective, portability offers a simpler, potentially more flexible alternative that doesn't require a trust to preserve the exemption, though bypass trusts still have other non-tax benefits. The question asks about Harold's unused exemption, for which portability is the direct answer. Correct Answer: C. Wilma should make a portability election on Harold's estate tax return (Form 706). Harold's estate is $3,000,000, well below his $13,610,000 exemption. This leaves an unused exclusion of $10,610,000 ($13,610,000 - $3,000,000). By making a portability election, Wilma can add this $10,610,000 to her own exemption, dramatically increasing the amount she can pass tax-free at her death.

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Question 6: Charitable Remainder Annuity Trust (CRAT)

A client is considering establishing a Charitable Remainder Annuity Trust (CRAT). Which of the following statements about a CRAT is FALSE?

Explanation: The Trap: CRATs and Charitable Remainder Unitrusts (CRUTs) are often confused. The key is to distinguish their unique characteristics, especially regarding contributions and payment structure. The Rule: A CRAT provides a fixed annuity payment (a stated dollar amount or a fixed percentage of the initial fair market value) to non-charitable beneficiaries for a term of years (up to 20) or for life.

• The annuity must be between 5% and 50% of the initial fair market value of the assets.
• No additional contributions are allowed after the trust's inception.
• The remainder interest (the charitable portion) must be at least 10% of the initial fair market value.
• A CRUT, by contrast, pays a fixed percentage of the revalued trust assets annually, and does allow for additional contributions.

Why A is true: This is a fundamental requirement for CRATs and CRUTs. Why C is true: This defines the "annuity" characteristic of a CRAT (fixed payment). Why D is true: This is a key requirement to ensure a meaningful charitable gift. Correct Answer: B. Additional contributions can be made to the trust after its inception. This statement is FALSE. A CRAT does not permit additional contributions after the trust is established. This is a distinguishing feature from a Charitable Remainder Unitrust (CRUT).

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Question 7: Section 2503(c) Trust for Minors

Mr. and Mrs. Chen want to make annual gifts to their three grandchildren, all under age 12, to fund their future education. They are concerned about gift tax implications and want to ensure the gifts qualify for the annual gift tax exclusion. They are considering a Section 2503(c) trust.

Which of the following provisions is a requirement for a trust to qualify as a Section 2503(c) trust?

Explanation: The Trap: Candidates often confuse the age of majority (18) with the specific age requirement for Section 2503(c) trusts (21). Also, the degree of control the beneficiary must have at that age is often misunderstood. The Rule: A Section 2503(c) trust is a specific type of trust designed to allow gifts to minors to qualify for the annual gift tax exclusion, even though the minor does not have immediate control over the assets. The key requirements are:

1. The trust property and income may be expended by or for the benefit of the donee before age 21.
2. Any unexpended property and income must pass to the donee when they turn 21.
3. If the donee dies before age 21, the remaining trust property and income must be payable to the donee's estate or as the donee may appoint under a general power of appointment.

Why A is wrong: The distribution age for a 2503(c) trust is age 21, not 18. While the beneficiary must have the right to withdraw at 21, they don't necessarily have to take the distribution (e.g., the trust can continue if the beneficiary doesn't exercise a withdrawal right within a reasonable period). Why B is wrong: While good practice, there is no requirement for the trustee to be independent for a 2503(c) trust. A parent or grandparent can serve as trustee. Why D is wrong: The trust must be available to the beneficiary at age 21, not necessarily terminate at 25. While it can continue past 21 if the beneficiary has a right to withdraw at 21 and fails to exercise it, the specific requirement is for availability at 21. Correct Answer: C. The trust property and income may be expended by or for the benefit of the donee before age 21. This is a core requirement of Section 2503(c), allowing the trustee to use funds for the minor's benefit without jeopardizing the annual exclusion.

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Question 8: Generation-Skipping Transfer (GST) Tax

Emily establishes an irrevocable trust with $5,000,000 for the benefit of her granddaughter, Sarah. Emily's daughter, Beth (Sarah's mother), is still alive. The current GST tax exemption is $13,610,000.

Which of the following statements regarding the Generation-Skipping Transfer (GST) tax is most accurate?

Explanation: The Trap: Many candidates confuse the GST tax exemption with the gift/estate tax exemption, or misinterpret the "skip person" definition. The fact that Beth is alive is a distractor if you don't understand the direct skip rule. The Rule: The Generation-Skipping Transfer (GST) tax is a separate federal transfer tax imposed on transfers to "skip persons." A skip person is an individual who is two or more generations younger than the transferor (e.g., a grandchild when the parent is alive), or a trust where all beneficiaries are skip persons. A direct skip occurs when a transfer is made directly to a skip person. Each individual has a lifetime GST tax exemption (indexed for inflation, $13,610,000 for 2026), which can be allocated to transfers to avoid the GST tax. The GST tax rate is the highest federal estate tax rate (currently 40%). Why A is wrong: A grandchild is a skip person, even if their parent (the transferor's child) is alive. This is a direct skip. Why B is wrong: While Sarah is a skip person, Emily has a GST exemption available that can be allocated to cover the transfer. Why D is wrong: The GST tax exemption is separate from the gift/estate tax exemption. While they are the same dollar amount, their application is distinct. The GST tax applies to transfers to skip persons, regardless of whether the transfer exceeds the gift/estate tax exemption (though the gift/estate tax might also apply). Correct Answer: C. Emily can allocate her GST tax exemption to the trust to ensure no GST tax is due. Since Sarah is Emily's granddaughter and her mother (Beth) is alive, Sarah is a skip person, making this a direct skip subject to GST tax. However, Emily has a $13,610,000 GST tax exemption. By allocating $5,000,000 of her exemption to this trust, the entire transfer will be exempt from GST tax.

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Question 9: Marital Deduction

Mr. and Mrs. Johnson, both U.S. citizens, are planning their estates. Mr. Johnson has a net worth of $15,000,000, and Mrs. Johnson has a net worth of $5,000,000. Mr. Johnson wants to leave his entire estate to Mrs. Johnson at his death.

Assuming Mr. Johnson dies in 2026, which of the following statements about the federal estate tax implications of this plan is most accurate?

Explanation: The Trap: The size of the estate can make candidates think estate tax is inevitable. However, the unlimited marital deduction is a powerful tool often overlooked or misunderstood in its effect on the first spouse's estate. The Rule: For U.S. citizens, there is an unlimited marital deduction for transfers between spouses, whether by gift during life or bequest at death. This means that any amount of property transferred to a surviving spouse (who is a U.S. citizen) will not be subject to federal gift or estate tax at the time of the transfer. This effectively defers estate tax until the death of the surviving spouse. Why A is wrong: This ignores the marital deduction. Why C is wrong: The marital deduction is unlimited and applies to the entire amount transferred to the spouse, before considering the individual exemption. The exemption then applies to the surviving spouse's estate. Why D is wrong: Because of the unlimited marital deduction, no federal estate tax will be due at Mr. Johnson's death on the assets passing to Mrs. Johnson. Correct Answer: B. His estate will receive an unlimited marital deduction, resulting in $0 federal estate tax at his death. Since Mrs. Johnson is a U.S. citizen and Mr. Johnson is leaving his entire estate to her, his estate will qualify for the unlimited marital deduction. This means no federal estate tax will be due at his death. The estate tax will be deferred until Mrs. Johnson's death.

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Question 10: Will Substitutes

Which of the following estate planning tools is considered a "will substitute" because it allows for the transfer of assets outside of the probate process?

Explanation: The Trap: All options are estate planning tools, but only one directly bypasses probate. Candidates might get caught up thinking about what influences asset distribution (like a will) rather than what avoids probate entirely. The Rule: Probate is the legal process of validating a will and administering an estate, typically involving court supervision, public records, and potential delays/costs. Will substitutes are mechanisms that allow assets to transfer directly to beneficiaries upon death without going through probate. Common examples include:

• Joint tenancy with right of survivorship (JTWROS)
• Payable-on-death (POD) and Transfer-on-death (TOD) designations
• Beneficiary designations on life insurance and retirement accounts
• Revocable living trusts (also known as inter vivos trusts)

Why A is wrong: A last will and testament is the primary document governing the probate process; it does not avoid it. Why B is wrong: A durable power of attorney is a management tool for incapacity during life; it ceases upon death and does not transfer assets. Why D is wrong: A charitable lead trust is a sophisticated charitable giving vehicle; while it transfers assets, its primary purpose is not to bypass probate for personal beneficiaries, and it's a specific type of irrevocable trust. Correct Answer: C. A revocable living trust A revocable living trust is specifically designed so that assets titled in the name of the trust can pass directly to the beneficiaries upon the grantor's death, bypassing the probate process entirely. The grantor typically acts as the initial trustee and beneficiary, retaining full control during their lifetime.

--- That's 10 questions to sharpen your estate planning knowledge. For more targeted practice, including explanations written by AI tutors, explore VoraPrep's full question bank.

How These Questions Were Chosen

These ten practice questions weren't pulled from thin air. They represent a deliberate strategy to help you think like the CFP Board examiner and tackle CFP6 effectively.

• Mirrors Actual Exam Difficulty: The questions are crafted to reflect the cognitive level required on the actual CFP exam. They demand more than rote memorization; they require you to analyze scenarios, identify relevant facts, and apply multiple rules simultaneously. This is the "judgment-first" approach we champion at VoraPrep.
• Covers Key Blueprint Areas: We ensured coverage of high-frequency topics within the CFP Board's Estate Planning Principal Knowledge Topics, including:
• Wills and Trusts
• Federal Gift and Estate Tax Fundamentals
• Generation-Skipping Transfer Tax
• Marital Deduction and Portability
• Charitable Giving Strategies
• Basis Rules for Inherited Property
• Non-Tax Aspects of Estate Planning (POAs, Will Substitutes)
• Common Mistake Triggers: Each question is designed with specific "traps" in mind—the common errors candidates make. We then break down why those tempting wrong answers are incorrect, training you to spot these pitfalls before they cost you points on exam day. For example, confusing inherited basis with gifted basis, or misapplying the unlimited marital deduction.
• High-Value Concepts: Estate planning concepts often build upon each other. We focused on questions that reinforce foundational rules (like the annual exclusion) while also introducing more complex applications (like portability or GST tax) that are frequently tested and carry significant weight.

By dissecting questions built this way, you're not just learning answers; you're developing the critical thinking skills essential for passing the CFP exam.

How to Use Practice Questions Effectively

Just doing practice questions isn't enough; you need to engage with them strategically to maximize their impact on your CFP exam preparation.

1. Timed vs. Untimed Practice:

• Untimed (Initial Learning): When first tackling a topic, work through questions untimed. Focus on understanding the concepts, referencing your notes, and articulating the why behind each step. Don't rush; accuracy and comprehension are paramount here.
• Timed (Exam Simulation): As you get closer to the exam, incorporate timed practice. Mimic exam conditions: no distractions, limited time per question. This builds stamina and helps you manage pressure.

1. Review Every Answer (Right or Wrong): This is non-negotiable.

• Wrong Answers: Don't just look at the correct answer and move on. Understand why your answer was wrong, what concept you misunderstood, and how the correct answer applies. What was the tempting distractor?
• Right Answers: Even if you got it right, review the explanation. Did you get it right for the right reasons? Was there a more efficient way to arrive at the answer? This reinforces correct reasoning.

1. Track Patterns in Mistakes: Maintain an "error log." Note the question topic, the specific concept tested, and why you got it wrong. Are you consistently missing questions on charitable remainder trusts? Or maybe the inclusion rules for gross estate? This personalized feedback is invaluable for targeting your study efforts. VoraPrep's adaptive learning engine automatically tracks your performance and focuses questions on your weak areas, which can be a huge time-saver.
2. Spaced Repetition: Don't just do all questions once and forget them. Revisit difficult questions after a few days or weeks. This spaced repetition technique helps to solidify memory and ensure long-term retention of complex rules and applications.
3. Articulate Your Reasoning: For every question, imagine you have to explain the answer to a peer. Can you clearly articulate the rule, the calculation, and why other options are incorrect? If not, your understanding isn't deep enough.

By adopting these strategies, your practice question time transforms from a simple quiz into a powerful learning experience. For more strategies, check out our 15 Tips to Pass the CFP Exam in 2026.

Get 3,000+ More Estate Planning & CFP Questions

These ten questions are just a glimpse into the depth and quality of practice you need to truly master CFP Estate Planning and the entire CFP curriculum. At VoraPrep, we've built a platform specifically designed to optimize your study time and boost your confidence.

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• 6,900+ practice questions with AI-Written Explanations: Our extensive question bank covers all 8 principal knowledge areas, including hundreds of highly realistic estate planning questions. Each explanation is crafted by our AI tutor, Vory, to be clear, concise, and immediately accessible, helping you understand the why behind every answer.
• Adaptive Learning Engine: Forget generic study plans. VoraPrep's intelligent algorithm learns your strengths and weaknesses as you practice. It then targets your weak areas with personalized questions, ensuring you spend your valuable study time where it matters most.
• 24/7 AI Tutor (Vory): Stuck on a concept? Need more clarification on a specific rule? Vory is always available to provide instant, personalized support, making complex topics easy to understand. It's like having a personal CFP instructor on demand.
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Official resources and references

• CFP Board: Get Certified — The official pathway to CFP certification.
• IRS Publication 559: Survivors, Executors, and Administrators — Comprehensive guide to tax issues for estates and beneficiaries.
• IRS Form 706: United States Estate (and Generation-Skipping Transfer) Tax Return — The form used for estate and GST tax reporting, relevant for portability elections.

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Frequently asked questions

What topics are covered in CFP Estate Planning (CFP6)?

CFP Estate Planning (CFP6) covers a broad range of topics including wills, trusts, federal gift and estate taxes, generation-skipping transfer tax, marital deduction, portability, charitable giving strategies, basis rules for inherited property, and non-tax aspects like powers of attorney and will substitutes. The CFP Board's Principal Knowledge Topics document provides a detailed breakdown.

How many hours should I study for the CFP exam's Estate Planning section?

While there isn't a specific hour recommendation for each section, candidates generally dedicate 250-300 hours to the entire CFP exam. Estate Planning is a complex and heavily weighted section, so allocate a significant portion of your study time, focusing on applying concepts through practice questions.

What is the most common mistake candidates make in Estate Planning questions?

The most common mistake is memorizing rules without understanding their application. The CFP Board tests judgment, so candidates often fall into traps by misapplying a rule to a scenario or failing to identify the best solution among plausible options. Thoroughly reviewing explanations for both correct and incorrect answers helps overcome this.

How does the annual gift tax exclusion work for married couples?

For 2026, the annual gift tax exclusion is $19,000 per donee. A married couple can elect gift splitting, effectively doubling the exclusion to $38,000 per donee per year from the couple. This allows them to make larger gifts without incurring gift tax or using their lifetime exemption.

Is the CFP exam pass rate consistent across all sections, including Estate Planning?

The CFP exam pass rate typically hovers around 60-65% overall. While the CFP Board doesn't release pass rates per section, Estate Planning is considered one of the more challenging areas due to its complexity and the need for nuanced application of rules. Strong performance in this section is crucial for overall success.

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