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Reprieve from the Student Loan Debt Warden: Student Loans in Default Can Look to 529 Plans
Good to Know 5.2 Million The number of student loans in default in early 2019 according to the Ascent’s Student Loan Debt Statistics for 2019 That’s the bad news. The good news is that there may be a way out for students with balances remaining in their 529 Qualified Tuition Program. Before the SECURE Act, distributions…
Ownership of Property in a Trust
Course: Estate PlanningLesson 3: Understanding Trusts and Trust Documents Student Question: Perhaps a slightly mundane question, but here we go: It had been my understanding that property in a trust was held and owned by the trust itself, as a separate legal entity. However, several times in this course there has been reference to the trustee having ownership of the property. Is there…
Section 179 Expensing
Which of the following expenses can Vicki expense entirely under Section 179 expense assuming she meets all other requirements? $10,000 for a new coat of paint in the lobby and office. $20,000 for a new roof on the warehouse $30,000 for vacation $25,000 for new computers CLICK TO REVEAL ANSWER Expand D is the answer.…
SECURE Act: Good News and Bad News for Retirement Planning
The long-awaited bipartisan SECURE Act (the Act) was finally approved by the House on December 17, 2019, after a seemingly interminable process that began in March 2019. The Senate approved the measure at the speed of light (at least by legislative standards) on December 19. President Trump signed the measure into law the next day,…
Unused Premiums in Term Insurance
Course: Insurance Planning Lesson 12: Types of Life Insurance Student Question: Could you help clarify the term “unused premiums” as it relates to term life insurance? I guess I don’t see how you could have a premium not used in term life. Thanks! Michael Instructor Response: Michael, Assume you pay $6,000 in annual prepaid premiums on January 1, 2020, for coverage for…
Basis of Inherited Property
Bill Farmer bought 1,000 acres of farmland for $300,000. When his oldest son married, Bill gave him 400 acres for a farm. When Bill died this year, the remaining 600 acres were divided in Bill’s will between his two younger sons. The 600 acres had a fair market value at Bill’s death of $600,000. Which…
Annual Background Checks of CFP® Certificants
CFP Board’s December 17, 2019, Independent Task Force Report Apparently, there’s a new Sheriff in town. As a result of a recent task force analysis, CFP Board will now conduct annual background checks on CFP® Certificants. An overview of the Board’s report follows: Overview On July 30, 2019, the Board of Directors of CFP Board (“The Board”)…
Distributable Net Income Application
Course: Estate Planning Lesson 9: Income Taxation of Trusts and Estates Student Question: Hi Bruce When a Trust has an income accumulation year, must the Trust pay taxes on that accumulation of DNI in the year of accumulation? If so, why do that – why would a Trust hold income at the confiscatory Trust income tax rates? If not, how many years can a…
Qualified Pension Plan Ratio Percentage Test
Assume that, of the 100 employees eligible for participation in G Company’s qualified pension plan, 20 are highly compensated employees and all 20 participate. What is the minimum number of G Company’s non-highly compensated employees that must participate in G Company’s qualified pension plan to meet the ratio percentage test? 20 50 56 70 CLICK…