SAMPLE STAND ALONE MULTIPLE CHOICE QUESTIONS - Version 2.0 - Published January 2020

Sep 26, 2026

Uploaded by Callum

Practice selection of standalone multiple-choice questions for FP Canada certification exams, aligned to the FP Canada Standards Council Competency Profile. Questions cover estate planning trusts and gifting to minors, calculation of taxable income from common income sources, and life-insurance funding strategies for retirement income and estate liabilities. Additional items address capital gains and principal residence implications, policy coverage outcomes after major illness, spousal RRSP/RRIF withdrawal tax effects, and eligible dividend/capital dividend treatment after corporate dispositions.

LanguageEnglish

CategoryExam

FormatPDF

Pages37

Reading Time1 h 33 min

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SAMPLE STAND ALONE MULTIPLE CHOICE QUESTIONS Version 2.0 Published January 2020 TABLE OF CONTENTS Questions ................................................................................................................................. 3-19 Answers ................................................................................................................................. 20-36 QUESTIONS Each multiple-choice question on FP Canada certification exams is linked to the most relevant competency statement from the FP Canada Standards Council Competency Profile. The questions included in this selection include their assigned competency statement. 2.224-Considers potential estate planning strategies Q1. Kathleen wishes to leave a sum of money to each of her minor grandchildren upon her death. She wants the investment income to be used to support them until they finish their education and the capital distributed to each of them when they turn age of 30. Kathleen should leave the money to: a) each of her children to be invested on behalf of the grandchildren. b) each of her grandchildren directly. c) testamentary trusts established for each of her grandchildren as beneficiaries. d) inter vivos trusts established for each of her grandchildren as beneficiaries. 1.113 – Collects information to establish client's current and projected tax position Q2. Selena's income for the current year is made up of the following: $12,000 child support payments as mandated by her recent separation agreement, $3,500 in royalties from a video game production,$19,000 in employment income and $8,000 in workers' compensation payments. What is Selena's taxable income? a) $22,500 b) $30,500 c) $34,500 d) $39,000 2.113-Assesses risk exposure against existing risk management strategies Q3. Bill, age 30, is currently earning $55,000 per year net of tax. For estate planning purposes, he wants to ensure that his family maintains this level of income until his expected retirement at age 55. Assuming no other financial resources and no additional income, an annual after-tax return of 3%, anda payment is made at the beginning of each annual period, how much life insurance would Bill need now to meet this income requirement? a) $ 957,723 b) $ 968,933 c) $ 986,455 d) $1,375,000 2.210 – Considers potential risk management strategies Q4. Corey purchased a cottage 30 years ago for $2,000 and it is now worth $100,000 . He wishes to leave it to his daughter but is concerned about the capital gains tax payable in the event of his death. If Corey were to use life insurance to fund this liability, which of the following products would be most suitable? 1. whole life insurance 2. 10-year renewable term 3. term-to-100 4. term-to-65 a) 1 and 3 only b) 1 and 4 only c) 2 and 3 only d) 2 and 4 only 1.114 – Identifies tax implications of assets and liabilities Q5. Bill, a widower, and Sam, his adult son, own a cottage together as tenants-in-common. The cottage property has appreciated in value over the years. Bill and Sam also own their own principal residences. On Bill’s death: 1. Sam will be taxed on the capital gain accrued on his share of the cottage property. 2. Sam will assume ownership of Bill’s share of the cottage property based on current FMV. 3. A capital gain may be reported on Bill’s terminal return on his share of the cottage property. 4. A principal residence exemption maybe claimed on Bill’s terminal return on his share of the cottage property. a) 1 and 2 only b) 1 and 3 only c) 2 and 4 only d) 3 and 4 only 1.109 – Collects information regarding client’s existing insurance coverage Q6. For the last 12 years Alex, age 40, has had a five-year renewable and convertible term life insurance policy for which he pays a monthly premium at preferred rates. Last week, Alex suffered a serious heart attack but is now recovering. With this current coverage, Alex will: 1. sees a prem

FAQs

What competency mapping does this question set use?

Each multiple-choice question is linked to the most relevant competency statement from the FP Canada Standards Council Competency Profile, and included questions include their assigned competency statement.

How do the questions approach estate planning and trusts?

The questions test scenarios such as leaving money to minor grandchildren with capital and income timing, and choosing appropriate trust structures or insurance products to fund estate-related liabilities.

What tax topics are covered in the sample questions?

The set includes taxable income calculations from various income types, tax implications of assets and liabilities (including capital gains and principal residence exemptions), and tax treatment of RRSP/RRIF and dividends after corporate gains.

Sep 26, 2026

Uploaded by Callum