Practice Test Geeks(CES) Certified Estate and Trust Specialist Practice Test
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CES Estate Settlement & Probate Process Flashcards

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

Read the first 6 CES Estate Settlement & Probate Process flashcards as text

  1. Under the Uniform Probate Code, what is a 'small estate affidavit,' and when can it be used?

    Answer: A simplified procedure allowing heirs to collect assets without formal probate when the estate falls below a state threshold

    A small estate affidavit allows heirs to collect probate assets without formal administration when the gross probate estate falls below the state's threshold, typically ranging from $10,000 to $200,000.

  2. What is the purpose of publishing a 'Notice to Creditors' during probate?

    Answer: To give creditors a limited time to file claims against the estate

    Publishing a Notice to Creditors in a local newspaper starts the statutory claims period, after which creditors who fail to file lose their right to collect from the estate.

  3. Which asset is NOT included in the probate estate?

    Answer: Bank account with a payable-on-death (POD) beneficiary

    A payable-on-death bank account passes directly to the named beneficiary by contract, bypassing probate entirely.

  4. What document must the executor file with the IRS within nine months of the decedent's death if the gross estate exceeds the applicable exclusion amount?

    Answer: Form 706 (United States Estate Tax Return)

    Form 706 must be filed within nine months of death (with a six-month extension available) when the gross estate exceeds the applicable exclusion amount, which is $13.61 million in 2024.

  5. What is the stepped-up basis rule, and how does it benefit heirs?

    Answer: It resets the cost basis of inherited assets to fair market value at the date of death, reducing capital gains tax on a future sale

    Under IRC §1014, inherited assets receive a new basis equal to fair market value at the date of death, eliminating the unrealized capital gain that accrued during the decedent's lifetime.

  6. Which estate settlement strategy uses the marital deduction to defer estate taxes until the death of the surviving spouse?

    Answer: Qualified terminable interest property (QTIP) trust

    A QTIP trust qualifies for the unlimited marital deduction, deferring estate taxes until the surviving spouse's death while allowing the first spouse to control the ultimate disposition of assets.