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Financial Advisor VIP Certification Practice Exam III

Financial Advisor — This exam mirrors the CFPĀ® (Certified Financial Planner) certification examination administered by the CFP Board, which consists of 170 multiple-choice questions across two 3-hour sessions covering Financial Planning, Investment Management, Tax Planning, Retirement Planning, Estate Planning, and Risk Management domains.

29
Questions
170m
Time Limit
72.00%
To Pass
Question 1 of 29šŸ‘‘ VIP

Marcus, age 58, holds a concentrated position: 85% of his $2.1 million portfolio is in appreciated employer stock with a cost basis of $120,000. He wants to reduce concentration risk but is concerned about the large capital gains liability. His advisor recommends a charitable remainder unitrust (CRUT). Which of the following BEST describes the primary tax advantage of transferring the appreciated stock into a CRUT?

Questions 2–29 and full explanations are VIP-exclusive.