STEP Society of Trust and Estate Practitioners (TEP) Certification

Question 1

In a Charitable Remainder Trust (CRT), what happens to the trust assets at the end of the trust term?

Assets pass to the income beneficiary's estate Assets are liquidated and distributed equally among all beneficiaries The remaining assets pass to the designated charitable beneficiary Assets revert to the original grantor

Correct Answer:

The remaining assets pass to the designated charitable beneficiary

Question 2

What distinguishes a Charitable Remainder Annuity Trust (CRAT) from a Charitable Remainder Unitrust (CRUT)?

A CRAT pays a fixed percentage of trust assets annually, while a CRUT pays a fixed dollar amount A CRAT pays a fixed dollar amount annually, while a CRUT pays a fixed percentage of trust assets valued each year A CRAT benefits multiple charities, while a CRUT can benefit only one A CRAT is irrevocable, while a CRUT can be revoked by the grantor

Correct Answer:

A CRAT pays a fixed dollar amount annually, while a CRUT pays a fixed percentage of trust assets valued each year

Question 3

What is the primary planning advantage of a Donor-Advised Fund (DAF) compared to making direct charitable gifts each year?

The donor retains legal ownership and control of donated assets DAF contributions are permanently exempt from all federal taxes The donor receives an immediate income tax deduction and can recommend grant distributions to charities over time DAFs provide the donor with a lifetime income stream

Correct Answer:

The donor receives an immediate income tax deduction and can recommend grant distributions to charities over time

Question 4

For a private foundation, which of the following counts as a 'qualifying distribution' toward the mandatory 5% annual payout requirement?

Contributions to a donor-advised fund held by a community foundation Federal excise taxes paid on investment income Grants to public charities and reasonable operating expenses for charitable purposes Investment management fees paid to manage foundation assets

Correct Answer:

Grants to public charities and reasonable operating expenses for charitable purposes

Question 5

Under IRC Section 4941, which of the following is a recognized exception to the self-dealing rules for private foundations?

Selling investment property to a substantial contributor at fair market value Lending foundation funds to a disqualified person without interest Paying reasonable compensation to a disqualified person for necessary personal services rendered to the foundation Renting office space from a foundation board member at below-market rates

Correct Answer:

Paying reasonable compensation to a disqualified person for necessary personal services rendered to the foundation

Exam overview

About this Exam

Prepare with the STEP Society of Trust and Estate Practitioners (TEP) Certification practice quiz. This question bank includes 100 questions covering professional, client, primary, strategic, and charitable. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

More details

Additional Information

STEP Society of Trust and Estate Practitioners (TEP) Certification

This practice set contains 100 questions from the matching question bank and focuses on professional, client, primary, strategic, and charitable. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

Quiz information

Frequently Asked Questions

The complete question count is available after full access is unlocked.

No fixed duration is currently configured for this quiz.

Question explanations are included where they are available in the quiz content, helping you review the reasoning after answering.

Yes. You can retake the practice test again as you continue studying during your available access period.

After your access is confirmed, you can continue into the complete practice exam from this quiz flow.

Unless explicitly stated otherwise, this page provides independent practice material for study and exam preparation and is not the official examination itself.

Correct Answer:

Correct Answer:

Correct Answer:

Correct Answer:

Correct Answer:

About this Exam

Additional Information

STEP Society of Trust and Estate Practitioners (TEP) Certification

Frequently Asked Questions

Related Questions

Texas Real Estate Exam

Texas Real Estate Practice Quiz

California 15 Hour Real Estate Tax Law Practice Exam

2026 FFM Agent Broker Certification Practice Exam

3CX Academy Advanced Certification Practice Exam

3CX Academy Basic Certification Practice Exam