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. What is the executor's primary fiduciary duty during estate administration?

    Answer: Prudently administer the estate in the best interests of both creditors and beneficiaries

    The executor has a fiduciary duty to prudently collect and protect estate assets, pay valid debts and taxes, and distribute the remainder to beneficiaries according to the will and applicable law.

  2. What is 'ademption' in estate law?

    Answer: The failure of a specific bequest because the property no longer exists in the estate at the time of death

    Ademption occurs when a specifically bequeathed item is no longer part of the estate at death — it was sold, lost, or destroyed — so the bequest fails and the beneficiary receives nothing.

  3. A decedent's will was executed in State A, but they were domiciled in State B at death. Which state's law governs distribution of personal property?

    Answer: State B, the state of domicile at death

    Distribution of personal property in an estate is governed by the law of the decedent's domicile at the time of death, regardless of where the will was executed.

  4. Which court action can a beneficiary bring if an executor fails to file the estate tax return or distribute assets within a reasonable time?

    Answer: Surcharge action

    A surcharge action holds the executor personally liable for losses caused by breach of fiduciary duty, including failure to timely file returns or make distributions.

  5. What is the 'portability' election in federal estate tax, and when must it be made?

    Answer: An election to transfer unused gift tax exclusion to the surviving spouse, made by filing Form 706 within nine months of death (extended to five years for timely-filed estates)

    Portability allows the estate of the first deceased spouse to transfer any unused applicable exclusion to the surviving spouse by timely filing Form 706, even if no estate tax is owed.

  6. Under the installment payment rules of IRC §6166, which condition allows an estate to defer estate tax payments over 14 years?

    Answer: The estate includes a closely held business interest exceeding 35% of the adjusted gross estate

    IRC §6166 allows deferral of estate taxes attributable to a closely held business interest for up to 14 years (5-year deferral + 9 annual installments) when that interest exceeds 35% of the adjusted gross estate.