Practice Test Geeks(CEA) Certified Estate Advisor Practice Test
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Digital Asset Management Flashcards

7 cards from real CEA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Digital Asset Management flashcards as text

  1. Which IRS form must an estate file if it holds more than $10,000 in foreign cryptocurrency exchange accounts?

    Answer: FinCEN Form 114 (FBAR)

    Foreign financial accounts, including foreign crypto exchange accounts, exceeding $10,000 in aggregate value must be reported via FBAR (FinCEN Form 114).

  2. A decedent ran a Substack newsletter with 10,000 paid subscribers at $10/month. For estate planning, the advisor should prioritize:

    Answer: Valuing the subscriber base and planning for business continuity or sale

    A paid newsletter with recurring revenue has significant goodwill and cash flow value that must be appraised and addressed through business continuity or sale planning.

  3. What is the primary purpose of including a 'no-contest' (in terrorem) clause in a will that contains digital asset bequests?

    Answer: To discourage beneficiaries from challenging the will and risking their inheritance

    A no-contest clause deters will challenges by providing that a beneficiary who contests the will forfeits their share, protecting the decedent's digital asset distribution plan.

  4. A client transfers $50,000 in Ethereum to an irrevocable trust. Which gift tax rule applies?

    Answer: The transfer is a completed gift subject to gift tax rules and must be reported on Form 709

    Transferring cryptocurrency to an irrevocable trust is a completed taxable gift; if it exceeds the annual exclusion, it must be reported on Form 709 and applied against the lifetime exemption.

  5. A client's estate includes login credentials stored in a personal notebook in the home safe. How should the advisor characterize this method?

    Answer: Acceptable but risky — the notebook is vulnerable to physical theft, fire, and discovery by unintended parties

    Physical notebooks can be lost, destroyed, or found by the wrong person; while legally valid, advisors should recommend supplementing with a secure digital vault or attorney-held copy.

  6. Which type of digital asset is most likely to have zero estate value despite significant emotional importance to the family?

    Answer: A gaming account with virtual currency and achievements on a platform with non-transferable terms

    Many gaming platforms' terms of service prohibit account transfers and void the account at death, rendering virtual assets legally worthless despite sentimental value.

  7. A CEA is reviewing a trust document drafted before digital assets were common. What should the advisor recommend?

    Answer: Amend the trust to include explicit digital asset provisions and fiduciary access authority under RUFADAA

    Older trusts typically lack digital asset language required under RUFADAA, so a trust amendment (restatement) adding explicit digital asset authority is the most efficient update.