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Owner of a Grantor Trust

By Dan Madden, CFP®

In which of the following situations would the grantor of a trust not be considered the owner? The grantor has a reversionary interest in the trust, of which the grantor’s son is the sole beneficiary, but the grantor cannot exercise this power until eight years after transfer of property to the trust. The grantor retains…

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Four Reasons NOT to Rely on Social Security Disability Insurance

By Bruce Starks, CPA, CFP®

Good to Know You just asked your client about their long-term disability plan.  They replied “I have that covered. I have Social Security Disability Insurance.” Here’s a hint for the rest of this article-your client probably does NOT have this risk “covered” if that’s the only disability insurance they have. There are at least four…

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Revocable versus Grantor Trusts

By Bruce Starks, CPA, CFP®

Course: Estate PlanningLesson 9: Income Taxation of Trusts and Estates Student Question: Can you refer me to a comparison (or just write a few notes) on how a grantor trust differs from a revocable trust and how a non-grantor trust differs from an irrevocable trust? They seem synonymous respectively to each other. Thank you! Instructor…

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Basis on Sale of Gifted Stock

By Dan Madden, CFP®

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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“Per Capita” Fee for CFP Board Exam Takers Begins January 1

By Dan Madden, CFP®

CFP® Board Updates Students of our CFP Certification Education Programs are aware, but this may serve as a reminder, the CFP Board will begin charging the $195 “Per Capita” fee on January 1, 2023. What is the Per Capita Fee? When a student completes this program, we report it to the CFP Board, and the…

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Understanding the Relationship Between Coupon Rates and Duration

By Bruce Starks, CPA, CFP®

Course: Investment PlanningLesson 9: Fixed Income Securities Student Question: There is a question regarding duration that I continue to struggle with. Which of the following are true: Can you explain #1 and #3? Instructor Response: Thank you for your question.  This can become a bit convoluted. Let’s unpack the word “duration” first.  Duration is nothing more…

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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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Does Your Client Really Need an Estate Plan?

By Bruce Starks, CPA, CFP®

Good to Know How many of your clients think a great evening is sitting around a roaring fireplace on a cold night, drinking an excellent Merlot, and discussing death with their sweetheart?  The author’s guess (and hope!) is about zero. Yet, even though that romantic setting is not the best time to discuss estate planning,…

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Clarifying Tort Liability

By Bruce Starks, CPA, CFP®

Course: Retirement PlanningLesson 2: Qualified Plan Advantages and Disadvantages for Employees and Business Owners Student Question: Hi- I have a few questions regarding tort liability. Negligence is Tort Liability?  Why isn’t it contractual?  Are all torts criminal in nature? Instructor Response: Good questions here. See below for my response to each. Yes Tort law and…

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