CFP Board’s December 17, 2019, Independent Task Force Report Apparently, there’s a new Sheriff in town.  As a result of a recent task force analysis, CFP Board will now conduct annual background checks on CFP® Certificants.  An overview of the Board’s report follows: Overview On July 30, 2019, the Board of Directors of CFP Board (“The Board”)…

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Course: Estate Planning Lesson 9: Income Taxation of Trusts and Estates Student Question: Hi Bruce When a Trust has an income accumulation year, must the Trust pay taxes on that accumulation of DNI in the year of accumulation? If so, why do that – why would a Trust hold income at the confiscatory Trust income tax rates? If not, how many years can a…

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Course: Income Tax Planning Lesson 10: Recognition of Expenses, Losses, and Deductions Student Question: Question 5 (below) did not make sense to me. I started out by breaking down by year – 400,000/2,100,000*3,000,000 and so forth, but did not arrive at the correct answer. So then I tried adding up 3 year – 400+650+700/2100000*3,000,000. That…

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CFP® Certificant in the News According to the CFP Board, “the percentage of women CFP® professionals has remained flat at 23 percent for at least a decade.” Based upon CFP Board commission researched aimed at increasing that percentage, the “WIN Council” and “WIN Advocates” were created by the Board. Key information follows: “WIN Council Following…

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Course: Estate Planning Lesson 5: Transfer Taxation II – Lifetime Transfers Student Question: Hi Bruce, I’m reading about the “expanded Annual Exclusion Amount of $155,000.” Just so I’m clear, is this an expansion from the “regular” $15,000 Annual Exclusion Amount? And what is it for? Thanks! Kevin Instructor Response: Hi Kevin, You are correct. The…

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Course: Estate Planning Lesson 10: Application of Estate Planning Concepts Student Question: HI Bruce- Can you help clarify for me seemingly contradictory information in the two sentences below regarding “disinheriting children”? The first sentence seems to imply that the surviving spouse could disinherit children. However, the second sentence states that QTIPs are often used to…

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CFP Board’s November 2019 “Let’s Make a Plan” newsletter addresses digital security and more There’s never been a time in history when it was more important to keep online financial records private. For example: A 2019 Pew Research Center FACTANK report indicates 9 in every 10 Americans use the internet for online shopping and social…

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Course: Insurance Planning Lesson 6: Commercial Property and Liability Insurance Student Question: Can you please provide an example of contingent business interruption and extra expense insurance? Laura Instructor Response: Hi Laura, Good question. Here’s how contingent business interruption insurance might apply. You own a nationwide chain of jewelry stores that specialize in gold/palladium alloys. Your…

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