Every day, thousands of people reach retirement age, and in the coming decade, millions more will turn 65. While many have saved enough for a comfortable retirement, a significant number overlook the importance of having a solid estate plan. This is where a certified estate planner (CEP) comes in. CEPs specialize in creating comprehensive plans to manage money and assets over the long term while ensuring your wishes are clearly outlined and followed. Here’s how a CEP can help safeguard your financial legacy.
Consider working with a financial advisor as you not only create or modify an estate plan, but as you plan your retirement, too.
What Is an Estate Plan?
The estate plan outlines the distribution of a person’s assets in the event of death or incapacitation. It typically includes strategies for intergenerational wealth transfer, such as wills, trusts, insurance and philanthropic bequests.
While financial assets often dominate estate plans, non-financial items with sentimental value can be equally significant. Estate plans address issues like inheritance, designate caregivers for dependents, and detail how accrued benefits or insurance should be transferred to beneficiaries. Many plans also include instructions for managing decisions if the owner becomes unable to make them independently.
Contrary to popular belief, estate planning isn’t just for retirees. Creating a plan early provides crucial protection against unforeseen events. Whether simple or complex, every estate benefits from thoughtful and precise planning.
This is where estate planners come in. These professionals, often with backgrounds in law, financial planning or accounting, help clients identify assets to cover and craft clear, actionable directives. Some estate planners hold the certified estate planner (CEP) designation, underscoring their expertise in guiding clients through this critical process.
What Does the Certified Estate Planner Qualification Mean?
A CEP will have credentials in the same professions as other potential estate planners. In other words, they have no special powers or privileges other estate planners lack. The difference is that the CEP is highlighting a particular expertise around the financial, legal and tax aspects of estate planning. Attorneys with a CEP already may specialize their practice to focus on taxes, estates and trusts.
The National Institute of Certified Estate Planners (NICEP) created the CEP, and it oversees the certification process. The group promotes estate planning as an essential element of financial preparation, just like retirement planning. NICEP’s CEP curriculum focuses on estate planning essentials, such as setting up living trusts, estate tax implications and disability planning. Candidates pay NICEP for enrollment, study materials and a to sit for a qualifying exam.
NICEP also offers a Master Certified Estate Planner regimen to professionals with current CEP certification. The course of study is similar to CEP. But the master’s certificate includes topics that can attract a wealthier clientele, such as corporate structuring and charitable planning.
What Are CEP Certification Requirements?
CEP applicants usually have current, valid professional credentials in the legal, tax or related advisory fields. However, NICEP may consider acceptance based on another relevant professional interest.
Approved applicants take a combination of online self-study and live, instructor-led classroom courses. The NICEP self-study manual weighs in at 770 pages, which covers all tested material. However, students can opt for online classroom sessions led by attorney instructors, which can add an extra 16 hours of class time. These sessions review case studies and include instructor-led Q&As.
There are eight study modules that cover estate taxes, wills, trusts and directives, planning for incapacity, funding bequests, protecting wealth and insurance. Students also learn about estate planning law and how to avoid violations, which particularly benefits students whose practice is in financial advisory or accounting,
To earn certification, students must successfully pass a proctored, closed-book exam with a score of at least 70%. Those who do not pass have up to three additional attempts to achieve certification. Once certified, CEPs are required to complete eight hours of continuing education every two years and pay an annual recertification fee of $235. They must also adhere to NICEP’s code of ethics, which mandates compliance with federal and state licensing authorities, professional organizations, and ethical business practices. Certification may be revoked at NICEP’s discretion.
What Does CEP Certification Cost?
CEP students pay an upfront, non-refundable fee of $1695, which includes the first annual recertification fee.
NICEP estimates students will need five or six months to complete the CEP coursework. That said, applicants have one year from the date of enrollment to complete the required study.
Are There Other Certifications for Estate Planners?
Estate planners have options when it comes to distinguishing their practice with extra professional credentials. However, not all certifications are equal, since coursework and professional requirements vary widely. For contrast with the CEP, here are two other certifications to consider.
Accredited Estate Planner
The Accredited Estate Planner (AEP) designation is a product of the National Association of Estate Planners & Councils (NAEPC). It’s also limited to candidates with existing professional licenses, although NAEPC is more specific about areas of expertise. Potential candidates include attorneys, chartered life underwriters, certified public accountants, certified trust and financial advisors, chartered financial consultants and certified financial planners. Whatever their background, candidates must show a third of their business involves estate planning, based on a rubric NAEPC provides.
AEP certification differs from CEP in that there is no prescribed course of study for all candidates. Those with more than 15 years experience simply need to submit their professional bona fides, letters of recommendation and a processing fee, which includes first year dues and costs $350. However, all applicants must complete 30 hours of continuing education every two years.
Candidates with less than 15 years experience must complete two graduate-level courses on estate planning at the American College of Financial Services. And this is where AEP becomes a bigger investment, since these courses cost $1,850 each.
Certified Estate and Trust Specialist
The Certified Estate and Trust Specialist (CES) certificate comes from the San Diego-based Institute for Business and Finance, which also grants certifications in mutual funds, annuities , income investing and taxes. The CES certificate costs $1,365. It requires holders to absorb a curriculum covering beneficiaries, wills, probate, retirement accounts, taxes, trusts, post-mortem guidelines and funerals.
Enrolling in the CES program requires only one year of experience in the financial industry and a B.A. degree. However students can complete the work while earning their degree and earn certification once they have compiled a year’s worth of employment.
Bottom Line
The CEP demonstrates that a financial professional is well-versed in the particulars of estate planning. It’s not the only certification available and a great estate planning advisor may find it unnecessary. That said, the Certified Estate Planner designation highlights an important area of expertise, so if you’re ready to engage an advisor on an estate plan, those with CEP in their title are worth a look.
Tips on Estate Planning
- An advisor with a CEP clearly welcomes business in estate planning and invests time and money in maintaining their expertise. That said, a good estate planner does not need a CEP to serve clients well. You don’t have to part ways with a trusted advisor to draft your estate plan.
- If estate planning is a daunting prospect, a CEP may provide valuable guidance. Finding the right financial advisor who fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to be matched with an advisor who can help you achieve your financial goals, get started now.
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