AEP Cheat Sheet 2026

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

1. A 'dynasty trust' is designed primarily to avoid which transfer tax by holding assets in trust for multiple generations? → Generation-Skipping Transfer (GST) tax
2. Under IRC §2056A, a Qualified Domestic Trust (QDOT) is used to defer estate taxes when: → The surviving spouse is not a U.S. citizen
3. When a donor contributes appreciated long-term capital gain property to a public charity, the AGI deduction limit is: → 30% of AGI
4. How does a Charitable Remainder Trust (CRT) benefit estate planning? → It enables charitable giving with income and tax advantages.
5. Which of the following correctly describes the income tax basis of inherited property under the stepped-up basis rules? → The heir's basis is the fair market value of the property on the date of death
6. What is the primary purpose of a Grantor Retained Annuity Trust (GRAT)? → To transfer assets with reduced gift tax liability.
7. What does the step-up in basis rule apply to? → Inherited assets
8. In Accredited Estate Planner, what role does tax planning & strategy play in ensuring client/stakeholder satisfaction? → It builds trust through demonstrated competence and consistency
9. For a Qualified Charitable Distribution (QCD) from an IRA to qualify for exclusion from gross income, which requirement must be met? → The distribution must not exceed $100,000 per year per taxpayer
10. Which professional would most likely provide tax minimization strategies in an estate plan? → CPA
11. What is the primary purpose of risk assessment & mitigation in the context of Accredited Estate Planner? → To ensure consistent quality and professional accountability
12. Which advanced planning tool involves selling assets to an intentionally defective grantor trust (IDGT)? → Intentionally defective grantor trust
13. How should a AEP professional handle a situation where risk assessment & mitigation protocols conflict with practical constraints? → Document the conflict and seek guidance from appropriate authorities
14. Which quality improvement method is most applicable to regulatory compliance & ethics in Accredited Estate Planner? → Plan-Do-Check-Act (PDCA) continuous improvement cycle
15. A trustee's duty to keep beneficiaries 'reasonably informed' under the Uniform Trust Code typically includes which of the following? → Furnishing annual trust accountings and responding to reasonable requests for information
16. In a cross-purchase buy-sell agreement among three business owners, how many life insurance policies are typically required? → 6
17. A Qualified Domestic Trust (QDOT) is specifically designed for situations where the surviving spouse is: → A non-U.S. citizen
18. What is the significance of peer review in financial analysis & reporting for AEP professionals? → It promotes accountability, knowledge sharing, and quality improvement
19. In which type of business entity is a step-up in income tax basis MOST easily achievable for all business assets upon the death of an owner? → Partnership or LLC taxed as a partnership
20. A charitable lead annuity trust (CLAT) provides an income stream to charity first and then passes remaining assets to: → Non-charitable beneficiaries such as family members
21. Which of the following is a primary benefit of a Spousal Lifetime Access Trust (SLAT) in estate planning? → It allows a spouse to benefit from assets while removing them from the taxable estate
22. Which documentation practice is most important for financial analysis & reporting in the AEP field? → Maintaining complete, accurate, and timely records
23. Which technology trend is most likely to impact tax planning & strategy in the AEP field in coming years? → Digital tools for enhanced data collection, analysis, and reporting
24. What is the significance of peer review in tax planning & strategy for AEP professionals? → It promotes accountability, knowledge sharing, and quality improvement
25. In Accredited Estate Planner, what role does regulatory compliance & ethics play in ensuring client/stakeholder satisfaction? → It builds trust through demonstrated competence and consistency
26. Which IRS form must a taxpayer file to report a noncash charitable contribution exceeding $500? → Form 8283
27. What is the significance of peer review in regulatory compliance & ethics for AEP professionals? → It promotes accountability, knowledge sharing, and quality improvement
28. How should a AEP professional handle a situation where regulatory compliance & ethics protocols conflict with practical constraints? → Document the conflict and seek guidance from appropriate authorities
29. Which federal tax is directly associated with transferring property at death? → Estate tax
30. Which fiduciary role involves distributing a decedent’s assets under a will? → Executor