Blog

Carryover of Losses

By Dan Madden, CFP®

The following information has been provided by a client for income tax purposes: $45,000 salary from an S corporation where the client is a vice-president $3,500 loss from the S corporation $1,500 loss from a 3% interest in a limited partnership $1,200 loss from a 10% interest in Middletown Partnership in which the client does…

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Center for Financial Planning Exceeds $1 million in Scholarships

By Dan Madden, CFP®

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…

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Skip Persons and the Generation Skipping Transfer Tax

By Dan Madden, CFP®

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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Medicare Part A Expenses

By Dan Madden, CFP®

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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Having Your Cake and Eating it Too: Equity Swap Contract

By Bruce Starks, CPA, CFP®

Good to Know Think about this situation. You have a client who has a significant amount of their wealth in a concentrated position. This might be because they are an executive with a company and have received equity-based compensation over the years or simply have accumulated the position through an inheritance or other means. Regardless…

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Custodial Accounts and Gifting

By Bruce Starks, CPA, CFP®

Course: Estate PlanningLesson 13: Case Study Online Student Question: If a check given by Mary to Peter was deposited into a custodial acct where Mary was the custodian, doesn’t that mean that Mary didn’t give up ALL control, so it’s not a complete gift? Instructor Response: Generally, the donor must give up all ownership and…

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OASDI Disability Income Benefits

By Dan Madden, CFP®

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…

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Get In Trouble with the SEC — You’re In Trouble with CFP Board

By Bruce Starks, CPA, CFP®

CFP® Certificants in the News CFP® certificants licensed to sell securities are subject to SEC’s Regulation Best Interest (Reg BI) if they make recommendations to retail customers. This article illustrates the reach of Reg BI into potential CFP Board discipline. Here’s the game plan: Identify key terms, Disclose SEC involvement in a Reg BI violation,…

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Value of Life Insurance in Buy-Sell Agreements

By Bruce Starks, CPA, CFP®

Course: Insurance PlanningLesson 17: Business Uses of Life Insurance Student Question: Do buy sell agreements accounts for projected growth of the company?  Do the life insurance benefits increase over time to account for projected growth, or perhaps can they invest and grow conservatively to keep up with inflation (or COLA on the plan)?  Instructor Response:…

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