AEP Study Guide 2026

Continuing education ensures AEP professionals stay current with evolving standards, technologies, and best practices in regulatory compliance & ethics, maintaining competency throughout their careers.

The executor (or personal representative) is the individual appointed in a will or by the court to administer the decedent's estate. A key responsibility of the executor is to identify and gather assets, pay debts and taxes, and distribute the remaining assets to beneficiaries. This includes the crucial task of preparing and filing all necessary tax returns, including the federal estate tax return (Form 706) if required.

A Certified Public Accountant (CPA) specializes in tax law and financial accounting, making them the most suitable professional to provide tax minimization strategies in an estate plan. They can advise on income tax implications, gift tax strategies, estate tax planning, and the tax efficiency of various trusts and asset transfers. Their expertise helps ensure the plan is structured to legally reduce tax liabilities.

Transferring limited partnership interests in an FLP allows the donor to apply DLOM and DLOC discounts, reducing the taxable value of gifts and estate transfers to family members.

An Irrevocable Life Insurance Trust (ILIT) is specifically designed to own life insurance policies, removing the death benefit proceeds from the insured's taxable estate. By doing so, the ILIT helps avoid estate taxes on the insurance payout, which can be substantial. The trust is irrevocable, meaning the grantor gives up control over the policy, ensuring it is not included in their estate for tax purposes.

IRC §6166 permits estates where the closely held business exceeds 35% of the adjusted gross estate to pay the business-related estate tax in installments over up to 14 years at favorable interest rates.