Free Online CFP Exam Questions | Certified Financial Planner
You will frequently come across CFP aspirants who excel in their studies and know the answers to practically all of the CFP exam questions. On the other hand, they fail to complete the CFP exam within the allotted time. This is simply a case of poor time management.
When taking the CFP® exam, time management is really important. When you solve many CFP questions while setting a time restriction for yourself, you will notice that your speed in answering the problems has improved. CFP Exam Prep by Achieve provides you with ten sample questions from the “Estate Planning” to improve your time management.
Q 1. The yearly exception for gift taxes in 2022 is $16,000. A married couple gave their kid $32,000 from their joint bank account. Which of the following statements is true?
A. The couple will need to file a gift tax return because the gift was split between spouses
B. The couple will need to file a gift tax return though no gift taxes are due
C. The couple will not need to file a gift tax return because the account was jointly owned
D. The couple will need to file a gift tax return because the full gift tax annual exclusion was used
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Q 2. What is the deadline for filing IRS Form 706 after the decedent’s death?
A. 9 months
B. 18 months
C. One years
D. Two year
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Q 3. In 2022, Ron gave Vera a $30,000 future interest gift. Assuming Ron is married, how much of the present will be eligible for the annual exclusion from gift taxes?
A. $0
B. $15,000
C. $28,000
D. $30,000
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Q 4. Ron entered into a life buy-sell agreement with his business partner, Cedric. Ron’s basis in the business is $375,000 and the buyout is for $850,000. If Ron dies, how much of his income will be taxable to his family?
A. $0
B. $200,000
C. $800,000
D. $1,000,000
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Q 5. Which of the following statements concerning probate is false?
A. Probate is a public procedure
B. Probate is a legal instrument enforced by the executor
C. Probate is a process that proves the will of a deceased person is valid
D. Rather than designating an executor, probate delegates asset disposition to the clerk of court.
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Q 6. A decedent’s probate estate includes everything except which of the following?
A. Life insurance payable to a deceased beneficiary
B. Property held as tenancy by entirety
C. Property owned outright in the decedent’s name
D. Tenancy in common interest
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Q 7. Which of the following describes a circumstance in which the decedent’s gross estate includes half of the property regardless of contribution?
A. Tenancy by entirety
B. Tenancy in sufferance
C. Tenancy in exemption
D. Tenancy in common
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Q 8. Which of the following statements about durable powers of attorney is/are correct? (1). A durable power of attorney survives the death of the principal.(2). A durable power of attorney survives disability of both the principal and the agent.
A. (l) only
B. (2) only
C. None of the above
D. All of the above
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Q 9. Morris and Alice, a married couple, bought their property for $420,000 eight years ago. When Morris died earlier this year, the fair market value was $670,000. What is Alice’s new basis if the house is held as community property?
A. $335,000
B. $420,000
C. $545,000
D. $670,000
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Q 10. Lewis’s adjusted gross estate is valued at $2,000,000. To qualify for the Section 6166 election, Lewis’s interest in a closely held business must exceed:
A. $500,000
B. $700,000
C. $900,000
D. $1,000,000
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There is a high probability that you may see familiar CFP® Questions in the Certified Financial Planner exam if you solve MCQs from the CFP Exam Prep By Achieve App. When you are comfortable while solving questions, you will be able to answer them more quickly, freeing up time to answer other CFP exam questions. Not only theoretical subjects but also tackling CFP applied questions will improve your speed in solving CFP numerical MCQs, which is essential for getting good scores in the exam. Download the app now to ace the CFP exam.
Originally published at https://cfp.achieve.ai on June 23, 2022.
