Chartered Trust & Estate Planner (CTEP) Certification Examination Questions

1. Estate planning as a process includes?

2. A__________can bring significant gift and estate tax savings.

3. Estate Planning is ________ process.

4. Full form of IRA is_____________

5. ______________ does not divest the policy holder of his rights in the policy and he retains

disposing power over it.

6. What is a ‘CestuquieTrust’?

7. Which of the following statement(s) about Public Trust is/are correct?

8. ________ plan involves only Business assets.

9. Estate Tax in India is _______

10. Which of the following is/are benefit(s) of Business Succession Planning?

11. You have just started your Estate Planning firm. Your friend who is into Estate Planning since 5 years explains you that an Ideal Estate Planning Prospect is one who is aged ___ or over and are _______________.

12. Failure to create an Estate Plan leads to __________

13. The maximum gratuity payable as per Payment of Gratuity Act is __________.

14. Which of the following comes under Non-Financial Goals of Estate Planning?

15. For which of the following stage of Business Cycle a succession plan is not prepared?

16. Which of the following statement(s) about ESOP is/are incorrect?

17. Estate planning has _________ steps.

18. There are _________________ Non-Formal Sources of Law.

19. As per Employee Provident Fund, a member can withdraw________ of the amount of provident fund at credit after attaining the age of 54 years or within one year before actual retirement or superannuation whichever is later.

20. You are an Estate Planner. Your Client asks you that if he wants to give business to his children which method is not appropriate. He further asks you which method can help him control the size of this gift through his will. Your reply would be___________

21. Charity tends to be ________ and _________ response.

22. Incase of Policies issued by the LIC, _______________ days of grace are allowed for monthly premiums.

23. What is the full form of DIN?

24. There are ______types of Charitable Trust. Out of these, in ________________ the value of assets are protected against inflation as the payouts vary with the asset value.

25. _________ is the most appropriate method for donors who prefer to make gifts at the end of their life and _________ is the most appropriate method for donors who prefer to give gifts during their lifetime.

26. Public Limited Companies have a minimum paid up capital of ______________ or such higher capital as may be prescribed.

27. With reference to Business Succession Planning, ____________ protects the value of the business.

28. There are four general categories of charitable gifts for donors and non-profits to consider. Out of these________ and ____________ require no contracts, trusts, trustees or special income tax returns. On the other hand, for __________ and _____________most donors and non-profits will need significant level of financial sophistication.

29. You are an Estate Planner. A client asks you to explain him the process of Probate. You explain him that Probate is one of the ways to pass ownership of estate property to a decedent’s survivors. The client further asks you to outline the various steps of Probate.

As an estate planner, you would outline the steps of probate as follows (please specify the correct order)

30. There are__________ methods of Business valuation.Out of these methods,___________ method applies discount rate to determine the valuation of the business.

31. Which of the following statement(s) about Ancillary Probate is/are false?

32. There are______ key estate planning strategies to transfer wealth efficiently. In a Granted Retained Annuity Trust,annuity payments are determined in relation to IRS benchmark interest rate called ____________ rate.

33. Which of the following statement(s) about codicil is/are correct?

34. There are ____________ sources of Law.

35. The selling/ planning process has __________ steps.

36. According to__________ of the ‘Registration Act, 1908’ the registration of a Will is not compulsory.

37. Registration of Power of Attorney is __________in India. If Power of Attorney is in respect

of immovable property of value more than __________ it must be registered.

38. Estate Planning Process is eight-step procedure that a manager has to follow.

The Eight Steps are as given below (not in any order)

The correct order is

39. ___________ is the submission of a disputed matter to an impartial person.

40. ____________ is the most basic legal instrument of all Estate Plans.

41. There are ______ steps in Selling process. The last step in Selling Process is ____________.

42. Who needs an Estate Plan?

43. High Net Worth Individuals can dispose of their money in______ ways. From the standpoint of the wealth holder, __________ is the most important of all.

44. While preparing a Will, the person who is making the Will must declare ________ that he is making the Will in his full senses and free from any kind of pressure. Once the testator completes writing the Will, he must the sign the Will very carefully in presence of at least __________independent witnesses.

45. Wills executed according to __________ of the _____________ are called Unprivileged Wills.

46. Which of the following statement(s) about Estate Planning is/are correct?

47. In case of Amputation through shoulder joint, what is the Percentage of Compensation given (as per Workmen’s Compensation Act)?

48. There are __________types of Insurance policies which are used in Estate Planning.

49. Section 45 of the Insurance Act,1938 places a check on the power of insurer to avoid life policy on the ground of innocent misrepresentation after the expiry of ____________ of the policy term

50. The goals of Estate Planning can be broadly divided into_______ categories.

51. You are an Estate Planner. Mr. Arun Mittal, a HNI client asks you to explain him the number of ways to dispose of his wealth. You explain to him about the three ways of disposing wealth. He further asks you to give ranking to the methods-from most preferred to least preferred. You tell Mr. Arun that the correct order is _________________.

52. In context to Workmen’s Compensation Act, any claim for the compensation should be made within _________ of the occurrence of the accident or from the date of death.

53. More than_______ in wealth classifies the person as “Ultra HNI”

54. According to ___________ of the Registration Act, 1908 the registration of a Will is not compulsory. A suit can only be filed within ___________days after the refusal of registration by the Registrar. An oral will made by a soldier above 18 years of age will be valid for __________ while a written will be valid for ___________.

55. A Business plan has_________ phases.

56. Which of the following statement is true?

57. Which of the following statement(s) about ‘Whole Life Insurance’ is/are correct?

58. Private Companies have a minimum paid up capital of _______________ or such higher capital as may be prescribed.

59. As per Payment of Gratuity Act, Gratuity shall be payable to an employee after he has rendered continuous service for not less than __________

60. Which of the following statement(s) about Estate Planning is/are true?

61. There are generally________ types of Private Foundations. Out of these, in ____________ arrangement, the donor has no direct participation in any charitable work.

62. You are an estate planner. A couple has jointly owned company. They have three children out of which one is disabled. As an estate planner, which Estate planning would you suggest to the couple, so as to enable them to transfer wealth efficiently to their children.

63. Which of the following events does not require a Estate Planner to revise his plan?

64. As per the ESI Act, the monthly wage limit for coverage is _____________ per month.

65. Which of the following is essential for contract?

66. ___________ is appropriate for donors who want to see their charitable dollars at work during their lifetimes.

67. Mr. Raj, the intestate, leaves no brother or sister but leaves his mother and one child of a deceased sister, Mary and two children of a deceased brother, George.

How will the Estate be distributed?

68. _________________ can be used as an alternative to the outright gift and ___________ can be used as an alternative to a traditional short term pledge.

69. What does ‘T’ in ‘SWOT’ stands for?

70. As per the Payment of Gratuity Act, the employer shall pay the amount of gratuity within _________.

71. A High Net Worth Individual (HNI) should hold at least _______ in liquid financial assets.

72. There are_________steps to implement Philanthropy Planning and the first step is__________.

73. A trust involves_______ parties. ___________ is the person who establishes the trust.

74. Estate tax is also called ________

75. _____________ allows you to contribute cash but you will not receive tax deduction at the

time of contribution.

76. You are an Estate Planner.

A client gives you the following information (given below in Table).

You are required to make Quick Estimate of Estate’s liquidity. All figures are in Rupees. The estimate in this case is ______________

77. What is the ultimate goal of Estate Planning?

78. __________ is an influential person who knows you favorably and agrees to introduce or

recommend you to others.

79. Which of the following statement(s) about Bequest is/are correct?

80. A person is deemed to have attained majority on completion of __________________ in case where a guardian of a minor’s property is appointed under the Guardian and Wards Act,1890.