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…

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Basis 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…

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Financial 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…

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Calculating 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,…

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Bi-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…

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Actuarial Assumptions in Defined-Benefit Pension Plans

Which of the following statements concerning the various actuarial assumptions used in estimating an employer’s contributions to a defined-benefit pension plan is correct? The higher the assumed rate of investment income, the larger the employer’s assumed contribution rate. The higher the employee turnover or termination rate, the larger should be the employer’s assumed contribution rate.…

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Medicare Part A Expenses

Which of the following individuals currently covered by Medicare Part A will not have any of their expenses covered by Medicare Part A? Evan who spent one week in hospice care before losing his battle with cancer. Felicia who was treated by her doctor for Strep throat. Greg who was needed a walker following hip…

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Skip Persons and the Generation Skipping Transfer Tax

Course: Estate PlanningLesson 7: Transfer Taxation IV – Generation Skipping Transfers Student Question: Regarding example below, would the death of the father, Stephen, not move Andrew one step up making him only one generation below Mrs. Jones? Would this not remove the generation skipping transfer tax? EXAMPLE: Upon her death, Mrs. Jones left her estate…

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Like-Kind Exchange

William found someone to buy his rental property in Maine. Which of the following properties that William would like to purchase as rental property would allow him to complete a like-kind exchange? A golf course rental property in Arizona that William identified 30 days after selling his Maine property. A beach rental house at the…

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CFP Professionals Highly Satisfied With their Career

CFP® Board Updates A 2023 Survey of CFP® Professionals shows overwhelming satisfaction with their career choice.  Furthermore, they fully believe the certification has a positive impact on their career. 87% of CFP® Professionals are satisfied with their career 89% are satisfied with their decision to pursue CFP® Certification An overwhelming 86% would recommend others pursue…

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