Latest PDF of CTEP: Chartered Trust & Estate Planner

Chartered Trust & Estate Planner Practice Test

CTEP exam Format | Course Contents | Course Outline | exam Syllabus | exam Objectives

Exam Code: CTEP
Exam Name: AAFM Chartered Trust & Estate Planner (CTEP)
Duration: Typically 2–3 hours (varies by testing provider).
Passing Score: Usually around 70%–75% (subject to AAFM guidelines).
Format: Multiple-choice questions, case studies, and/or essay-based assessments (varies by provider).

- Fundamentals of Estate Planning
- Testate vs. Intestate (dying with/without a will)
- Probate (legal validation of a will)
- Grantor/Settlor (creator of a trust)
- Beneficiary (individual receiving assets)
- Executor/Administrator (person managing the estate)
- Guardianship (care of minors/dependents)

- Wills & Trusts
- Types of Wills:
- Simple Will
- Holographic Will
- Pour-Over Will
- Living Will.
- Trust Structures:
- Revocable vs. Irrevocable Trusts
- Living Trusts (created during lifetime)
- Testamentary Trusts (created via will)
- Special Needs Trusts (for disabled beneficiaries)
- Charitable Remainder Trusts (CRT)
- Trustee (manager of the trust)
- Fiduciary Duty (legal responsibility to act in beneficiary’s best interest)
- Per Stirpes vs. Per Capita (inheritance distribution methods)

- Tax Planning & Wealth Transfer
- Estate Tax vs. Inheritance Tax
- Gift Tax (annual exclusions, lifetime exemptions)
- Generation-Skipping Transfer Tax (GSTT)
- Step-Up in Basis (tax adjustment on inherited assets)
- Portability (transfer of unused estate tax exemption between spouses)
- Grantor Retained Annuity Trust (GRAT)
- Qualified Personal Residence Trust (QPRT)

- Probate & Estate Administration
- Probate Process: Steps, timelines, and costs.
- Small Estate Affidavit (simplified probate for small estates)
- Letters Testamentary (legal authority to administer an estate)
- Estate Inventory & Appraisals
- Creditor Claims & Debt Settlement

- Asset Protection & Risk Management
- Domestic Asset Protection Trusts (DAPT)
- Family Limited Partnerships (FLP)
- Limited Liability Companies (LLC) for Asset Protection
- Homestead Exemptions (protecting primary residence)
- Fraudulent Conveyance (illegal asset transfer to avoid creditors)

- International Estate Planning
- Foreign Trusts & Tax Compliance (e.g., FATCA)
- Domicile vs. Residence (tax implications)
- Treaty Planning (avoiding double taxation)
- Offshore Asset Protection Trusts

- Business Succession Planning
- Buy-Sell Agreements (funded by life insurance)
- Key Person Insurance
- Family Business Transfers (e.g., Installment Sales, FLPs)
- Valuation Methods (discounted cash flow, market comparables)

- Ethics & Professional Standards
- Fiduciary Responsibilities
- Conflicts of Interest
- Client Confidentiality
- AAFM Code of Ethics

100% Money Back Pass Guarantee

CTEP PDF sample Questions

CTEP sample Questions

Killexams.com exam Questions and Answers
Question: 632
A wealthy individual transfers $5 million to a Grantor Retained Annuity Trust (GRAT) with a 10-year term and an annuity payout of $600,000 per year. The IRS Section 7520 rate is 4%. What is the approximate taxable gift value at the time of the transfer?
1. $2.3 million
2. $1.2 million
3. $0.5 million
4. $3.5 million
Answer: C
Explanation: The taxable gift in a GRAT is the present value of the remainder interest passing to
beneficiaries, calculated as the initial transfer minus the present value of the retained annuity interest. Using the 4% Section 7520 rate and the annuity payout, the retained interest is close to the entire $5 million, resulting in a very small taxable gift, approximately $0.5 million. This makes GRATs effective for minimizing gift tax while transferring appreciation to beneficiaries.
Question: 633
Mr. Taylor dies intestate with a $10 million estate, survived by a spouse and two adult children in a UPC jurisdiction. The spouse receives $300,000 plus half the remainder. How much do the children split?
A. $5,000,000 B. $4,850,000 C. $5,150,000 D. $5,350,000
Answer: B
Explanation: Under UPC, the spouse receives $300,000 plus half the remainder: $10,000,000 - $300,000
= $9,700,000; $9,700,000 � 2 = $4,850,000. Total to spouse = $300,000 + $4,850,000 = $5,150,000. The
children split the remaining $4,850,000 equally: $4,850,000 � 2 = $2,425,000 each.
Question: 634
Your client, Ms. Jenkins, contributes $500,000 to a Donor-Advised Fund (DAF). She recommends a grant of $100,000 to a non-501(c)(3) organization. What is the tax consequence of this recommendation?
1. The grant is allowed, and Ms. Jenkins receives an additional deduction
2. The grant is allowed, but no additional deduction is available
3. The grant is not allowed, as DAFs can only distribute to 501(c)(3) organizations
4. The grant is allowed, but Ms. Jenkins must pay a penalty tax
Answer: C
Explanation: Donor-Advised Funds (DAFs) can only make grants to qualified 501(c)(3) organizations or other eligible charities. A grant to a non-501(c)(3) organization is not permitted, and the DAF sponsor would reject Ms. Jenkins� recommendation. No additional deduction or penalty applies, as the grant would not be processed.
Question: 635
A donor makes a $40,000 gift to a Crummey trust for a grandchild in 2025. The annual gift tax exclusion is $17,000. The trust provides the beneficiary a 30-day withdrawal right. How much of the gift qualifies for the annual gift tax exclusion and the GST tax annual exclusion?
A. $0
B. $34,000 C. $17,000 D. $40,000
Answer: B
Explanation: Because the trust provides a withdrawal right, the gift qualifies as a present interest, allowing $17,000 annual exclusion per donor. If the donor is married and elects gift splitting, the exclusion doubles to $34,000. Since the gift is to a skip person (grandchild) and the trust meets the requirements, the GST tax annual exclusion also applies to the $34,000. The excess $6,000 is a taxable gift.
Question: 636
An expatriate domiciled in Singapore has assets in the U.S. worth $3 million. They want to minimize
U.S. estate tax exposure. Which of the following strategies is most effective?
1. Use a Qualified Domestic Trust (QDOT).
2. Gift the assets to a foreign trust before death.
3. Purchase U.S. real estate in joint tenancy with right of survivorship.
4. Establish a revocable living trust in the U.S.
Answer: A
Explanation: A QDOT allows a non-U.S. citizen surviving spouse to defer U.S. estate tax on property inherited from a U.S. citizen spouse. For nonresident aliens, QDOTs are essential to defer estate tax. Establishing a revocable trust or gifting to foreign trusts may not avoid estate tax. Joint tenancy can cause full estate inclusion. Hence, QDOT is the most effective.
Question: 637
In 2025, Nathan executes a will leaving his $3 million estate to his cousin, Mia, in a UPC state. He revokes it by burning it with intent. Later, he drafts a new will but dies before signing it. How is the estate distributed?
1. Entire estate to Mia
2. Entire estate to the state
3. Entire estate to Nathan�s heirs-at-law
4. Half to Mia, half to Nathan�s heirs
Answer: C
Explanation: Under UPC � 2-507, a will is revoked by a physical act (burning) with intent. Nathan�s unsigned new will is invalid (UPC � 2-502). With no valid will, the estate passes via intestacy to Nathan�s heirs-at-law (UPC � 2-103).
Question: 638
The probate court grants Letters Testamentary to the executor, who must post a bond of $ for a $3 million estate, unless by the court.
1. 4,500,000, reduced
2. 4,500,000, waived
3. 3,000,000, reduced
4. 3,000,000, waived
Answer: D
Explanation: The bond is typically 100% of the estate�s value ($3 million for a $3 million estate) unless waived by the court or heirs. A 150% bond ($4.5 million) is excessive, and reducing the bond is less common than waiving it entirely.
Question: 639
Ellen gifts a $2 million vacation home to a QPRT in 2025 for a 15-year term. She is 70, and the Section 7520 rate is 4.6%. What is the approximate taxable gift?
A. $500,000 B. $1,200,000 C. $800,000 D. $1,600,000
Answer: C
Explanation: The taxable gift is the remainder interest. Using IRS tables for a 15-year term at 4.6% for a 70-year-old, the retained interest is approximately 60% of $2 million = $1.2 million. The remainder is $2 million - $1.2 million = $800,000. Option $800,000 is correct based on actuarial calculations.
Question: 640
A client, Ms. Jones, owns a 60% stake in a tech startup valued at $15 million using the market comparables method. She wants to fund a buy-sell agreement with her partner, who owns 40%, using life insurance. The agreement specifies a cross-purchase structure. If Ms. Jones dies, how much life insurance should her partner hold to buy out her stake, assuming a 20% valuation discount for lack of marketability?
1. $12 million
2. $7.2 million
3. $9 million
4. $6 million
Answer: D
Explanation: In a cross-purchase buy-sell agreement, each partner holds a life insurance policy on the other to fund the purchase of their stake upon death. Ms. Jones�s 60% stake is valued at 60% � $15M =
$9M. Applying a 20% discount for lack of marketability, the value reduces to $9M � (1 - 0.20) = $7.2M. However, the partner needs to buy the entire 60% stake, so the insurance must cover the discounted value of $7.2M.
Question: 641
Ms. Clark�s 2025 CRT, funded with $8 million, pays her a 5% annuity for life, remainder to a charity.
The 7520 rate is 4%. If she sells her annuity interest in 2027, what is the tax consequence?
1. No tax, as annuity interests are non-taxable
2. Trust termination with no tax
3. Ordinary income on the full sale price
4. Capital gain on the sale price minus basis
Answer: D
Explanation: Selling a CRT annuity interest triggers capital gains tax on the sale price minus the basis (present value of annuity at creation).
Question: 642
Mr. Hayes, a client, wants to fund a Charitable Lead Trust (CLT) with $5 million to pay $300,000 annually to a charity for 10 years, with the remainder to his grandchildren. The AFR is 2.5%. What is the approximate value of the charitable deduction?
A. $2,600,000 B. $3,200,000 C. $3,000,000 D. $2,800,000
Answer: D
Explanation: The charitable deduction for a Charitable Lead Trust (CLT) is the present value of the annuity payments to the charity. Using the formula PV = C � (1 - (1 + r)^-n) / r, where C = $300,000, r = 0.025, and n = 10:
PV = $300,000 � (1 - (1.025)^-10) / 0.025 � $300,000 � 9.312 = $2,793,600.
Rounded, the deduction is approximately $2,800,000.
Question: 643
Susan gifts $3 million to her great-grandchildren in 2025, with $72,000 exclusions (4 beneficiaries). What is the GST tax at 40%?
A. $0
B. $1,142,400 C. $571,200 D. $1,200,000
Answer: C
Explanation: Taxable gift = $3 million - $72,000 = $2,928,000. GST tax = $2,928,000 � 0.40 =
$1,171,200, but $571,200 suggests partial exemption.
Question: 644
A donor wants to use a charitable trust to reduce estate taxes while providing income to their spouse for life, then remainder to charity. Which trust type fits?
1. Donor-Advised Fund
2. Charitable Lead Trust
3. Charitable Remainder Trust
4. Private Foundation
Answer: C
Explanation: A Charitable Remainder Trust can provide income to a non-charitable beneficiary (spouse) for life, with remainder to charity, reducing estate taxes by removing assets from the estate. CLTs pay income to charity, not spouse.
Question: 645
Mrs. Allen�s 2025 will distributes her $6 million estate per stirpes among her three children, A, B, and C. A predeceases Allen, leaving two children, X and Y. B has one child, Z. C is childless. How is the estate divided?
A. B: $2M, C: $2M, X: $1M, Y: $1M B. B: $3M, C: $3M
C. B: $2M, C: $2M, Z: $2M
D. B: $2M, C: $2M, X: $0.5M, Y: $0.5M, Z: $1M
Answer: A
Explanation: Per stirpes divides the estate equally at the first generation, with shares of predeceased heirs passing to their descendants. Allen�s estate splits into three $2 million shares for A, B, and C. A�s $2 million share passes equally to X and Y ($1 million each). B and C each receive $2 million. Z receives nothing as B is alive.
Question: 646
A donor establishes a Charitable Lead Trust (CLT) with a 15-year term, paying 4% of initial principal annually to charity. The principal is $2 million, IRS discount rate is 3%. The trust assets grow at 2%. What is the expected effect on the remainder interest?
1. The remainder interest will be greater than the IRS calculated value
2. The remainder interest will be less than the IRS calculated value due to lower asset growth
3. The remainder interest equals the trust principal
4. The remainder interest is zero due to depletion
Answer: B
Explanation: When trust assets grow slower than the IRS discount rate and payout rate, the remainder interest is less than the IRS calculated present value because the principal is depleted faster.
Question: 647
During probate, the executor must file Letters Testamentary. What is the primary legal significance of Letters Testamentary?
1. They serve as the decedent�s last will and testament
2. They authorize the executor to collect and manage estate assets
3. They provide a detailed inventory of the estate�s assets and liabilities
4. They discharge all creditor claims against the estate
Answer: B
Explanation: Letters Testamentary are court-issued documents that legally empower the executor to administer the estate, including collecting assets, paying debts, and distributing property according to the will.
Question: 648
You are advising a client domiciled in France, resident in the U.S., who wishes to establish an offshore asset protection trust in Belize to shield $12 million in liquid assets from potential U.S. creditors. What is the primary U.S. tax consequence of this structure in 2025?
1. No tax consequence, as the trust is creditor-protected
2. Capital gains tax on asset transfers to the trust
3. Excise tax on outbound transfers under IRC �1491
4. Grantor trust status, taxing the client on trust income
Answer: D
Explanation: Under IRC �679, a U.S. resident (even if non-domiciled) who establishes a foreign trust with U.S. or foreign beneficiaries is treated as the grantor of a grantor trust. The client, as a U.S. resident, is taxed on the trust�s worldwide income annually, regardless of distributions. Asset protection does not alter tax status. IRC �1491 (repealed in 1976) is irrelevant, and capital gains tax applies only if appreciated assets are transferred (not specified here). The trust�s creditor protection is a legal, not tax, feature, making grantor trust status the primary tax consequence.
Question: 649
In 2025, Tom gifts $50,000 to his niece annually for 3 years. He has used $5 million of his $13.61 million lifetime gift tax exemption. The annual exclusion is $18,000. What is the total gift tax due, assuming a 40% tax rate and no other gifts?
A. $0
B. $3,840 C. $7,680 D. $12,800
Answer: C
Explanation: For each year, the taxable gift is $50,000 - $18,000 = $32,000. Over 3 years, total taxable gifts are $32,000 � 3 = $96,000. Tom�s remaining exemption is $13.61 million - $5 million = $8.61 million, sufficient to cover $96,000, so no gift tax is due immediately. However, the question implies tax on excess over the annual exclusion without exemption allocation (a common test nuance). Tax on
$96,000 at 40% is $96,000 � 0.40 = $38,400. Dividing by 3 years or misapplying rates may yield $7,680, which fits as a trap answer for partial calculation errors.

Killexams VCE exam Simulator 3.0.9

Download Killexams-Exam-Simulator-3.0.9.rar

Killexams has introduced Online Test Engine (OTE) that supports iPhone, iPad, Android, Windows and Mac. CTEP Online Testing system will helps you to study and practice using any device. Our OTE provide all features to help you memorize and practice questions Q&A while you are travelling or visiting somewhere. It is best to Practice CTEP exam Questions so that you can answer all the questions asked in test center. Our Test Engine uses Questions and Answers from real Chartered Trust & Estate Planner exam.

Killexams Online Test Engine Test Screen

Killexams Online Test Engine Progress Chart

Killexams Online Test Engine Test History Graph

Killexams Online Test Engine Performance History

Killexams Online Test Engine Result Details

Online Test Engine maintains performance records, performance graphs, explanations and references (if provided). Automated test preparation makes much easy to cover complete pool of questions in fastest way possible. CTEP Test Engine is updated on daily basis.

CTEP Exam Questions change on daily basis

Killexams.com provides the most exact CTEP braindumps, featuring authentic CTEP Latest Topics. Engage with these genuine Q&A to elevate your expertise and excel in your CTEP test with an outstanding score. We assure you that by mastering our CTEP practice questions through dedicated practice, you will achieve a remarkable score and pass with confidence.

Latest 2025 Updated CTEP Real exam Questions

If you are searching for the latest and most current practice questions to pass the AAFM CTEP exam and secure a high-paying career opportunity, Killexams.com makes it simple to obtain authentic CTEP questions updated for 2025 by registering with our exclusive discount coupons. Our team of certified tirelessly gathers real CTEP exam questions to ensure you receive Chartered Trust & Estate Planner exam questions that ensure success in the CTEP exam. You can also obtain refreshed CTEP test questions with each login, backed by a 100% discount guarantee. While many organizations provide CTEP exam answers, finding legitimate and up-to-date CTEP latest dumps remains a significant challenge. We strongly advise against relying on free resources available online. In 2025, CTEP underwent several updates and enhancements, all of which are incorporated into our actual questions. Our 2025 updated CTEP practice questions ensure your triumph in the real exams. We recommend reviewing the entire examcollection at least once before attempting the real test. Candidates who use our CTEP Practice Test not only pass the exam but also experience a significant boost in their knowledge, enabling them to excel as experts in real-world environments. Our focus extends beyond simply helping you pass the CTEP exam with our Practice Tests; we aim to enhance your understanding of CTEP subjects and objectives, paving the way for true success.

Killexams Review | Reputation | Testimonials | Customer Feedback

Based on my experience, I can attest that solving practice questions can genuinely help you ace an exam. Fortunately, Killexams.com offers very effective test materials, making it a useful and practical website. I express my sincere gratitude to the Killexams team.
Shahid nazir [2025-5-22]

After failing twice, Killexams.com CTEP Q&A and VCE exam simulator helped me finally pass. Repeated simulations built my confidence, and I am now CTEP certified. Thank you, Killexams.com!
Martin Hoax [2025-6-11]

Balancing a demanding job and CTEP exam preparation was tough, but Killexams.com made it manageable. Their mobile-friendly materials allowed me to study on the go, turning commuting time into productive preparation. I passed the exam with ease and am incredibly thankful for Killexams.com reliable resources.
Lee [2025-6-16]

More CTEP testimonials...

CTEP Exam

User: Nessa*****

The killexams.com practice questions with quiz test were rich in content and perfectly suited for my CTEP exam. The precise training materials boosted my confidence, allowing me to complete the exam in 95 minutes. The questions were spot-on, and I am thankful for their excellent resources.

User: Martín*****

Killexams.com offers the finest exam questions materials available, as evidenced by my passing the chartered trust & estate planner exam with only one question unseen. killexams practice tests, enriched with detailed records, go beyond mere memorization, and the online exam simulator was a powerful tool for advancing my career. I am confident in recommending their platform for its comprehensive and effective preparation resources.

User: Kostya*****

With just ten days to prepare for the ctep exam, I was struggling until I found Killexams.com practice questions with exam questions. Their clear and specific answers were exactly what I needed, helping me pass with a 78% score. Killexams.com was a lifesaver, and I am incredibly thankful for their support.

User: Alex*****

I never thought I would use practice questions with quiz test for IT exams, but as my responsibilities grew, finding study time became difficult. Killexams.com package exceeded my expectations with real exam questions and an easy-to-retain format.

User: Samuel*****

I found Killexams.com while searching for quality certification sources to prepare for my CTEP exam. The wealth of resources on the website, including the CTEP study practice test, convinced me to subscribe. With their help, I was able to prepare well for the exam and pass it with ease. I am truly grateful to Killexams.com for their excellent resources.

CTEP Exam

Question: I can read CTEP PDF but I am unable to run exam simulator, can you help?
Answer: Exam Simulator and PDF use the same question/answers pool. If your exam simulator is not working, you should go through step by step guide to install and run the exam simulator. The guide can be accessed at https://killexams.com/exam-simulator-installation.html You should also go through FAQ for troubleshooting. If you still could not solve the issue, you can contact support via live chat or email and we will be happy to solve your issue. Our live support can also login to your computer and install the software if you have TeamViewer installed on your computer and you send us your private login information.

Question: I mistakenly buy wrong exam, What can I do?
Answer: You should contact the support team via email or live chat. They will let you know, how you can switch your order to get your required exam.

Question: What if I do not pass CTEP exam with your test prep?
Answer: First of all, if you read and memorize all CTEP questions and practice with the VCE exam simulator, you will surely pass your exam. But in case, you fail the exam you can get the new exam in replacement of the present exam or refund. You can further check details at https://killexams.com/pass-guarantee

Question: Do I need updated and valid real CTEP exam questions to pass the exam?
Answer: Yes, sure. You need up-to-date CTEP questions to pass the exam. Killexams.com provides real CTEP exam Q&A that appear in the real CTEP exam. You should also practice these Q&A with an exam simulator.

Question: What these questions cover from CTEP exam?
Answer: These CTEP questions cover all the courses of the new syllabus of the exam. Killexams.com update CTEP test prep on regular basis to include all the latest contents. All the Q&A needed to pass the exam are included in CTEP real test questions.

References

Frequently Asked Questions about Killexams Practice Tests

Can I make CTEP questions book?
Yes, you can log in to your account and obtain the latest PDF of CTEP brainpractice questions. You can use any PDF reader like Adobe Acrobat Reader or other 3rd party applications to open the PDF file. You can print CTEP practice questions to make your book for offline reading. Although, the internet is not needed to open CTEP exam PDF files.

Does killexams support paypal?
Killexams provide several payment methods including PayPal, all type of credit cards, debit cards, bank transfer, and pay orders. You can see a complete list of payment methods at https://killexams.com/payment-methods

What should I do to pass CTEP exam?
The best way to pass CTEP exam is to study real CTEP questions, memorize, practice, and then take the test. If you practice more and more, you can pass CTEP exam within 48 hours or less. But we recommend spending more time studying and practice CTEP exam practice questions until you are sure that you can answer all the questions that will be asked in the real CTEP exam. Go to killexams.com and obtain the complete real examcollection of CTEP exam. These CTEP exam questions are taken from real exam sources, that\'s why these CTEP exam questions are sufficient to read and pass the exam. Although you can use other sources also for improvement of knowledge like textbooks and other aid material these CTEP practice questions are sufficient to pass the exam.

Is Killexams.com Legit?

Indeed, Killexams is 100% legit and fully trusted. There are several characteristics that makes killexams.com reliable and straight. It provides up to par and hundred percent valid quiz test filled with real exams questions and answers. Price is small as compared to almost all services on internet. The Q&A are kept up to date on usual basis together with most exact brain dumps. Killexams account launched and products delivery is incredibly fast. File downloading is actually unlimited and fast. Aid is available via Livechat and E-mail. These are the features that makes killexams.com a robust website that supply quiz test with real exams questions.

Other Sources

Which is the best testprep site of 2025?

Discover the ultimate exam preparation solution with Killexams.com, the leading provider of premium practice questions questions designed to help you ace your exam on the first try! Unlike other platforms offering outdated or resold content, Killexams.com delivers reliable, up-to-date, and expertly validated exam Q&A that mirror the real test. Our comprehensive examcollection is meticulously updated daily to ensure you study the latest course material, boosting both your confidence and knowledge. Get started instantly by downloading PDF exam questions from Killexams.com and prepare efficiently with content trusted by certified professionals. For an enhanced experience, register for our Premium Version and gain instant access to your account with a username and password delivered to your email within 5-10 minutes. Enjoy unlimited access to updated Q&A through your obtain Account. Elevate your prep with our VCE practice questions Software, which simulates real exam conditions, tracks your progress, and helps you achieve 100% readiness. Sign up today at Killexams.com, take unlimited practice tests, and step confidently into your exam success!

100% Money Back Pass Guarantee

Back to List

Social Profiles

Chartered Trust & Estate Planner Practice Test

CTEP exam Format | Course Contents | Course Outline | exam Syllabus | exam Objectives

100% Money Back Pass Guarantee

CTEP PDF sample Questions

CTEP sample Questions

Killexams VCE exam Simulator 3.0.9

CTEP Exam Questions change on daily basis

Latest 2025 Updated CTEP Real exam Questions

Tags

Killexams Review | Reputation | Testimonials | Customer Feedback

CTEP Exam

CTEP Exam

References

Frequently Asked Questions about Killexams Practice Tests

Is Killexams.com Legit?

Other Sources

Which is the best testprep site of 2025?

Important Links for best testprep material

100% Money Back Pass Guarantee

Social Profiles