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Section 303 Redemption
A Section 303 redemption is most likely appropriate for which of the following estates? At Fred’s death, Fred owned all of his assets including the stock of a closely held corporation in Joint Tenancy WROS with his wife. Before Gloria’s death, she transferred all of her assets including the stock in a closely held corporation…
Highlights of Recent CFP Board Discipline
CFP® Certificants in the News The annual rate of public discipline against CFP® Certificants is estimated at less than two tenths of one percent. Yet, even the best of professions needs ethical enforcement. For example, CFP Board published a notice of public discipline against 13 Certificants on June 3, 2020. We will not repeat the…
Recognition on Installment Notes
Course: Estate PlanningLesson 12: Valuation and Freeze Techniques to Reduce Estate Tax Liability Student Question: I’m not sure how gains are spread out over the course of the note if these are typically structured “as interest only with a balloon payment at the end”. Here’s the language from the lesson: Instead of an outright sale, an…
Life Insurance in the Gross Estate
Which of the following assets would be included in Martin’s gross estate? Life insurance on Martin’s life purchased one year before he died by the trustee of Martin’s irrevocable life insurance trust. Life insurance on Martin’s life purchased by Martin’s wife two years before he died. Life insurance on Martin’s life purchased three years before…
COVID 19 and the Need for Incapacity Planning
Good to Know The same incapacity management techniques that address mental illness issues can also be effective when your client is temporarily incapacitated due to physical illnesses such as COVID-19. Here is a quick review of these documents and how they work. Power of Attorney (POA) This legal document empowers another person to act on…
Begin versus End Mode Calculations
Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: If it would be at all possible, can you provide me with a practical working explanation of when to use begin mode key and the end mode key in solving these calculations? Thank you for your attention Eric Instructor Response: Hi Eric, Great question. Ultimately, we look to the fact pattern of the question,…
Question: ADP Rules and 401(k)
Which of the following statements concerning differences between qualified and nonqualified stock options is correct? The employer can deduct the cost of both when they are granted. The employer can deduct the cost of qualified stock options but not nonqualified stock options. The employer can deduct the cost of qualified stock options, but the cost…
Board Releases Final Procedural Rules
CFP® Board Updates On May 29, 2020, the CFP Board announced the adoption of new Procedural Rules for the enforcement of the ethical and practical standards for CFP® Professionals. These new procedural rules become effective on June 30, 2020, when the CFP Board begins enforcement of the new Code of Ethics and Standards of Conduct…
Conversion of Personal Use Property
Course: Income Tax PlanningLesson 15: Property Transactions Student Question: Running with the last example on this page where the sale is between the basis for a gain or a loss, is there ever a situation where factoring in depreciation would result in either a gain or loss? Example Kevin’s home has been declining in value, so he has decided to move and rent…