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Transfer of Interest in Property Held in Joint Tenancy
Gary Chapelle owns a duplex with his brother in joint tenancy with right of survivorship. Gary would like to pass his interest in the property to his son, Bill, and Gary has provided in his will that his interest in the duplex will pass to Bill. Which of the following statements concerning the transfer of…
Read MoreNot All Sunsets Are Beautiful
Good to Know Income taxes and transfer taxes will rise-in some cases painfully-after December 31, 2025. Transfer taxes include gift, estate, and generation-skipping taxes. Income tax rates will increase and transfer taxes may rise as taxpayer friendly provisions of the Tax Cuts and Jobs Act (TCJA) expire (sunset) for years beginning on or after January…
Read MoreDefining Basis Points
Course: Investment PlanningLesson 15: Fundamentals of Derivatives – Futures and Options Student Question: Can you please explain what Basis points are and how/why they are generally used? Instructor Response: There are 100 basis points in 1%. Basis points are merely a common method of measuring investment fees or returns. An exchanged traded fund may charge a…
Read MoreBasis on Sale of Gifted Stock
Tom gave his son, David, a birthday present of Big M stock with a fair market value of $50,000. Tom paid gift tax of $11,700 as Tom had previously given David earlier this year a cash gift equal to the annual gift tax exclusion amount. Tom’s adjusted basis in the stock on the date of…
Read MoreFinancial Firms Account for Increase in CFP® Professionals
CFP® Board Updates New data from the CFP Board confirms recent trend of leading US firms adding more CFP® Professionals than ever. There were 6,089 new Certificants in 2023, with 1,000 of those coming from Edward Jones alone. In fact, four firms increased their number of CFP® Professionals by more than 200. The four leading…
Read MoreCalculating Rate of Return
Course: Investment PlanningLesson 1: Key Principles of Investing Student Question: Can you help solve a practice question? I looked through the textbook and my notes, and just couldn’t wrap my brain about how to solve the problem below. The confusing part to me is that the fund was not sold, so there is no sales price,…
Read MoreBi-weekly Refinance Payment Calculation
Mark refinanced his home mortgage to a 30-year fixed mortgage with biweekly payments. How much is each payment if he owed $410,000 at the time of the refinance and the interest rate is 7%? $1,021 $1,258 $1,521 $1,601 CLICK TO REVEAL ANSWER Expand B is the answer. Mark pays his mortgage every two weeks which…
Read More529 To Roth IRA Rollover
Good to Know Your prospect started saving for their child’s college education early and consistently. Fast forward to when the child graduates from college. Now it’s obvious there’s $35,000 in the 529 plan that will not be needed for college. When they turn to you for advice, how do you advise them? Here’s an interesting…
Read MoreRecognition on Installment Notes
Course: Estate PlanningLesson 12: Valuation and Freeze Techniques to Reduce Estate Tax Liability Student Question: I’m not sure how gains are spread out over the course of the note if these are typically structured “as interest only with a balloon payment at the end”. Here’s the language from the lesson: Instead of an outright sale, an…
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