CTFA Cheat Sheet 2026

The 30 highest-yield CTFA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. An asset's true value, price, or the amount for which it can fairly be anticipated to trade on the open market is: → Fair market value
2. You can refer to balance sheet and income statements that are crucial planning tools for creating and maintaining personal financial plans as: → Personal financial statements
3. Which type of pension plan guarantees a specific monthly benefit at retirement regardless of investment performance? → Defined benefit (DB) plan
4. Tax advantages are provided via flexible spending accounts and tax-deferred retirement plans. You may be able to__________ against some retirement plans. → Borrow
5. In intestate succession, when a decedent leaves a spouse and two adult children, which statement is most commonly true under state law? → The spouse and children share the estate according to state statute
6. What is a pour-over will in the context of estate planning? → A will that directs probate assets into an existing trust
7. Which document allows an individual to name a personal representative and specify how their estate should be distributed after death? → Last will and testament
8. What is beta in the context of investment management? → A measure of a security's or portfolio's volatility relative to the overall market
9. When a trustee fails to diversify trust investments and the trust suffers a resulting loss, the trustee may be liable for which remedy? → Surcharge equal to the loss caused by the failure to diversify
10. It is essentially a technique for creating financial statements that only records transactions involving genuine cash outlays. → Cash basis
11. Under IRC Section 4941, which transaction between a private foundation and a disqualified person constitutes prohibited self-dealing? → Selling foundation-owned property to a substantial contributor at fair market value
12. Under SECURE 2.0, unused 529 plan funds may be rolled over to which type of account subject to specific conditions? → Roth IRA for the 529 beneficiary
13. Under the principal and income rules, how are stock dividends typically allocated between income and principal in a trust? → Cash dividends are income; stock dividends are principal
14. Under the 'worst-in, first-out' tier system for Charitable Remainder Trusts, in what order are distributions characterized for income tax purposes? → Ordinary income first, then capital gains, then tax-exempt income, then return of corpus
15. A Pooled Income Fund is structurally most similar to which type of investment vehicle? → A mutual fund that allocates income to investors proportionally based on units held
16. Which measure is used to evaluate a bond fund manager's ability to add value above the benchmark after fees? → Alpha
17. The 10-year rule under the SECURE Act requires most non-spouse inherited IRA beneficiaries to do which of the following? → Distribute the entire inherited IRA within 10 years of the owner's death
18. An excess of spending over revenue that results in both insufficient finances and a decline in net worth is known as: → Cash deficit
19. Which type of IRA allows qualified distributions to be completely tax-free in retirement? → Roth IRA
20. The ability to pay off debts on time is indicated by the total monthly loan payments divided by the gross (before-tax) income for the previous month. → Debt service ratio
21. Which IRS form is used to file the annual income tax return for a complex trust? → Form 1041
22. What is the federal estate tax exemption amount for 2024 per individual? → $13.61 million
23. Which type of Charitable Remainder Trust pays a fixed percentage of the trust's fair market value, revalued annually? → Charitable Remainder Unitrust (CRUT)
24. Which statute governs the delegation of trustee investment functions to agents such as investment advisors? → Uniform Prudent Investor Act (UPIA)
25. Which charitable giving vehicle allows donors to make an irrevocable contribution to a sponsoring organization and recommend grants to charities over time? → Donor Advised Fund (DAF)
26. Which trust structure is most commonly used to remove life insurance proceeds from the insured's taxable estate? → Irrevocable life insurance trust (ILIT)
27. Which of the following characteristics distinguishes a public charity from a private foundation under IRC Section 509? → Receiving broad public support from diverse, independent sources
28. What is the annual contribution limit for a health savings account (HSA) for an individual with self-only HDHP coverage in 2024? → $4,150
29. Under the Uniform Probate Code, what is the order of priority when multiple claims exist against an estate? → Funeral costs, administration expenses, then creditor claims
30. The ability to pay current debts is calculated by dividing total liquid assets by total current liabilities. It is: → Liquidity ratio