CES Cheat Sheet 2026

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

1. For estate tax purposes, what does the 'gross estate' include? → All assets in which the decedent had an includible interest at death
2. An estate trust holds a mixed-use urban property. Which zoning and land use trend has most increased the value of walkable, mixed-use assets in recent years? → Urban infill and transit-oriented development preferences
3. Under the attorney-client privilege concept as applied to estate planning, which party generally holds the privilege in a trust after the grantor's death? → The successor trustee on behalf of the trust
4. For a Charitable Remainder Annuity Trust (CRAT), the required minimum payout rate is: → 5% of the initial fair market value of trust assets
5. An estate plan relies heavily on a single life insurance policy to fund an estate tax obligation. What is the primary concentration risk here? → Premium lapse risk
6. A CES specialist is analyzing whether to sell estate real property now or defer. Which macroeconomic indicator is LEAST relevant to this timing decision? → International trade deficit figures
7. What is the primary purpose of market analysis? → To identify opportunities, threats, and inform strategic positioning
8. What is the fundamental principle of strategic planning? → Aligning resources and actions with long-term organizational objectives
9. A beneficiary refuses a trust distribution within the required timeframe. Under IRC §2518, this qualified disclaimer causes the assets to pass to whom? → Pass to the next taker as if the disclaimant predeceased the transfer
10. What distinguishes a testamentary trust from a living (inter vivos) trust? → A testamentary trust is created by the decedent's will and only takes effect at death
11. Which estate planning risk is most effectively addressed by a Qualified Domestic Trust (QDOT)? → Loss of the marital deduction when the surviving spouse is a non-US citizen
12. When should a strategic plan be revised? → When significant changes in the internal or external environment require adaptation
13. What should be done if an error is discovered in existing records? → Draw a single line through the error, note the correction, date, and initial
14. Which document published by the OCC provides primary guidance to national bank examiners reviewing trust and fiduciary activities? → Fiduciary Activities Booklet of the Comptroller's Handbook
15. A 90-year-old client has a revocable living trust but no durable power of attorney. Which risk does this create? → A guardian may need court appointment to manage non-trust assets
16. Which document allows a beneficiary to formally request a change in trustee when dissatisfied with administration? → Petition for removal
17. In estate market analysis, cap rate compression in commercial real estate typically signals which market condition? → Rising investor demand relative to income
18. Under the Uniform Prudent Investor Act, which factor is NOT explicitly listed as relevant to the trustee's investment decisions? → The trustee's personal investment philosophy
19. Under the Model Rules of Professional Conduct, when an estate planning attorney represents multiple family members, which risk must be managed? → Conflicts of interest arising from differing client objectives
20. Which federal law primarily governs the regulation of investment advisers who manage trust assets and have assets under management of $100 million or more? → Investment Advisers Act of 1940
21. A CES specialist evaluates a trust's investment manager using the Sharpe ratio. What does a higher Sharpe ratio indicate? → Better risk-adjusted returns per unit of total portfolio risk
22. Under the unlimited marital deduction, which transfers qualify for a full federal estate tax deduction? → Outright transfers to a surviving spouse who is a U.S. citizen
23. How does the spread between cap rates and the 10-year Treasury yield function as a market signal for real estate investment decisions in estate management? → A narrowing spread signals that real estate offers less risk premium over bonds
24. Under the Uniform Trust Code, what is the minimum notice period a trustee must generally provide to qualified beneficiaries when accepting trusteeship? → 60 days
25. A client owns real property in three states. Which risk does a revocable living trust best mitigate compared to a will? → Multi-state ancillary probate
26. The 'no further inquiry' rule in trust law applies most directly to which situation? → When a trustee engages in a transaction that benefits themselves at trust expense
27. Which regulatory body oversees national bank trust departments that provide fiduciary services? → OCC
28. Which business valuation discount is commonly applied when transferring a minority interest in a closely held family business? → Minority interest discount and lack of marketability discount
29. Under the Uniform Prudent Investor Act, what is the primary duty of a trustee when setting investment policy? → Diversify investments and balance interests of all beneficiaries
30. The income tax deduction available to a donor who contributes property to a Charitable Remainder Trust equals: → The present value of the charitable remainder interest, calculated using IRS tables