Bruce Starks, CPA, CFP® – Page 25

Chapter 13 Bankruptcy Means Test

Course: Estate PlanningLesson 13: Case Study Online Student Question: Hello- I am a little confused how one set amount – $100 – is the threshold for means testing a bankruptcy petitioner, when the amount of debt a borrower may owe can vary by large amounts. It would seem the amount left over (income minus allowable…

Millenial and Gen Z Clients Need Financial Advice

CFP® Certificants in the News According to a recent CFP Board article, financial opportunity abounds in serving the Millenial and Gen Z generations. For example, the article reveals that “more than half of Americans were Millennials or younger as of July 2020. While the term ‘Millennial’ has been synonymous with ‘young adult’ throughout much of the…

CFP Board’s Disciplinary Actions: Implications for the CFP Board Exam

Good to Know Forewarned is forearmed when studying for the CFP Board exam or choosing a CFP® Certification program. In its latest release of public discipline, CFP Board telegraphs its continued priority for enforcing ethical conduct. Recent disciplinary actions include public censures, suspensions, and revocations. Public Censures Public censures were issued for: Selling securities without…

Maximum Family Benefit

Course: Insurance PlanningLesson 10: Social Security Student Question: Hello- Does the maximum family benefit apply to a husband and wife that are both fully insured if the combined total between the two exceeds the maximum family limit? If I understand correctly, the maximum family limit only applies if there are beneficiaries within the family receiving…

Ownership of Property in a Trust

Course: Estate PlanningLesson 3: Understanding Trusts and Trust Documents Student Question: Hello- Perhaps a slightly mundane question, but here we go: It had been my understanding that property in a trust was held and owned by the trust itself, as a separate legal entity. However, several times in this course there has been reference to the trustee having…

What Do You Need to Know to Pass the CFP Board Exam?

Good to Know The question posed in this article’s title can be answered by applying the timeless wisdom of a Chinese general who died over 2,500 years ago. “If you know the enemy and know yourself, you need not fear the result of a hundred battles.” -Sun Szu, 544-496 BC While the CFP Board exam…

Passing Property Via Will

Course: Investment PlanningLesson 14: Evaluation Portfolio Performance Student Question: Hello- I’m a little confused about the example (below) discussing an heirloom of only sentimental value. Why would this be titled at all for a will, especially since an earlier lecture said items of no value would pass through will as the situation does not involve…

Gift and Estate Tax Basic Exclusion Amount vs. Generation-Skipping Transfer Tax Exemption Amount

Perry made a $12,060,000 taxable gift to his son Ross on 1/1/2022 and a taxable gift of $12,060,000 to Ross’s daughter Marilyn on April 30, 2022. Perry made no gifts or generation-skipping transfers before 2022. Note the following: The Basic Exclusion Amount (BEA) in 2022 is $12,060,000, The GST Exemption is the same dollar amount…

Pro Bono Opportunity: Help Prevent Financial Elder Abuse

CFP® Certificants in the News According to nolo.com, “Financial fraud is the fastest-growing form of elder abuse. Broadly defined, financial elder abuse is when someone illegally or improperly uses a vulnerable senior’s money or other property. Most states now have laws that make elder financial abuse a crime and provide ways to help the senior…

Boot: Recognized Gain in Like-Kind Exchange

Course: Income Tax PlanningLesson 16: Property Transactions Without Gain or Loss Recognition Student Question: Hello- Melvin gave $40,000 in cash plus real property with an adjusted basis of $30,000 (fair market value of $100,000) and received real property with a fair market value (FMV) of $150,000. In this transaction, Melvin would have no recognized gain,…