STEP Study Guide 2026
Everything you need to pass the STEP exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 STEP Exam Format at a Glance
📚 STEP Topics to Study (63)
✍️ Sample STEP Questions & Answers
1. Which global trend has most increased demand for Trust Protector clauses in international trust structures?
Geopolitical uncertainty and regulatory changes have driven demand for trust protectors who can adapt trust structures to changing circumstances, move situs, or modify administrative provisions.
2. In a charitable remainder trust (CRT), what is the primary financial risk to the income beneficiary if the trust is underfunded?
If a CRT's assets decline and corpus is exhausted, the trust cannot continue making required annuity or unitrust payments to the income beneficiary.
3. A trustee commits a breach of the duty of impartiality when it:
Investing solely in bonds generates high income at the expense of growth, unfairly favoring income beneficiaries over remainder beneficiaries in violation of the duty of impartiality.
4. For a special needs trust (SNT) to preserve a beneficiary's eligibility for Medicaid and SSI, which documentation requirement is most critical at creation?
A first-party SNT under 42 U.S.C. §1396p(d)(4)(A) must include a Medicaid payback provision upon the beneficiary's death and be for the sole benefit of the disabled individual to preserve benefits eligibility.
5. What is the fundamental duty of a fiduciary?
The fundamental duty of a fiduciary is to prioritize the interests of the beneficiary above all else, including their own. This means acting with utmost loyalty, good faith, and prudence in managing assets or making decisions on the beneficiary's behalf. Fiduciaries are held to a high legal and ethical standard to ensure the beneficiary's well-being and objectives are always paramount.
6. Which type of trust receives a $300 personal exemption for federal income tax purposes rather than the standard $100?
A simple trust—one that is required to distribute all income currently and makes no charitable contributions—receives a $300 personal exemption under IRC Section 642(b).