Posts by Dan Madden, CFP®
Center for Financial Planning Exceeds $1 million in Scholarships
CFP® Board Updates The CFP Board announced in June that the Center for Financial Planning has surpassed $1 million is scholarships. This incredible milestone brings the Center to a total of 225 scholarships awarded. What makes these scholarships so special is that most are focused on students in underrepresented populations in financial planning, continuing the…
Read MoreSkip 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…
Read MoreMedicare 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…
Read MoreOASDI Disability Income Benefits
Which of the following statements concerning OASDI disability income benefits is correct? Disability is defined as the inability to perform all major duties of the insured’s own occupation. Unless specifically exempted, a waiting period of 12 months must be satisfied. If the disabled worker is also receiving workers compensation benefits, the full OASDI benefit is…
Read MoreWhich Trust is it?
Kathleen transferred her closely held stock to a trust for the benefit of her two daughters. Kathleen will receive a $50,000 distribution each year for the next 10 years from the trust. At the end of the trust term, Kathleen’s daughters will each receive 50% of the remaining trust assets. What type of trust did…
Read MoreAppropriate Valuation Method
Sam McBuck has an estate of $10 million and would like to leave it to his nephews. Sam assumes he will live for at least 5 more years. The property in Sam’s estate currently includes the following assets: – An apartment building in downtown New York that Sam owns with three partners, each of whom…
Read MoreRefinance Payment Calculation
Dale refinanced his home mortgage to a 30 year fixed mortgage with biweekly payments. How much is each payment if he owed $350,000 at the time of the refinance and the interest rate is 3%? $680 $771 $1,136 $1,242 CLICK TO REVEAL ANSWERExpandA is the answer. Brandon pays his mortgage every two weeks which means…
Read MoreTransfer 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 MoreCFP Board Announces Dates for 2022 Conference
CFP® Board Updates The 2022 CFP Board Conference will be the first year for a combined conference of CFP Board Registered Programs and the Annual Firms Summit. This exclusive conference is an intersection of today’s employers of CFP® Professionals and the colleges and universities preparing the CFP® Professionals of tomorrow. The conference will be held…
Read MoreDefined-Benefit Pension Plans – Actuarial Assumptions
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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