Estate Planning

# CFP — Estate Planning Exam: CFP Board Certification Exam — Domain G: Estate Planning (10% of exam) Exam Format: 170 questions total | [Source: CFP Board, cfp.net, live-fetched 2026-06-29] Last Updated: June 2026 --- ## Estate Planning Fundamentals Estate planning arranges for the transfer of assets at death (and incapacity) in accordance with the client's wishes, minimizing taxes, expenses, and delay. ### Core Documents | Document | Purpose | |---|---| | Will | Directs distribution of probate assets; names executor and guardians | | Revocable Living Trust | Avoids probate; manages assets during incapacity; directs distribution at death | | Durable Power of Attorney (DPOA) | Names agent to manage financial affairs if incapacitated | | Health Care Directive / Living Will | States wishes regarding end-of-life medical care | | Health Care Proxy / MPOA | Names agent to make medical decisions if incapacitated | --- ## Probate vs. Non-Probate Assets Probate assets: Transferred by will (or intestacy if no will). Go through court process. Non-probate assets (transfer automatically by operation of law): - Joint tenancy with right of survivorship (JTWROS) → passes to surviving joint tenant - Payable-on-death (POD) accounts → passes to named beneficiary - Transfer-on-death (TOD) accounts/securities → passes to named beneficiary - Retirement accounts (IRA, 401k) → passes to named beneficiary - Life insurance → passes to named beneficiary > Exam Tip: Beneficiary designations override the will. A client who…