Blog
How To Protect Your Digital Assets
CFP Board’s November 2019 “Let’s Make a Plan” newsletter addresses digital security and more There’s never been a time in history when it was more important to keep online financial records private. For example: A 2019 Pew Research Center FACTANK report indicates 9 in every 10 Americans use the internet for online shopping and social…
Contingent Business Interruption versus Extra Expense Insurance
Course: Insurance Planning Lesson 6: Commercial Property and Liability Insurance Student Question: Can you please provide an example of contingent business interruption and extra expense insurance? Laura Instructor Response: Hi Laura, Good question. Here’s how contingent business interruption insurance might apply. You own a nationwide chain of jewelry stores that specialize in gold/palladium alloys. Your…
Defined Benefit Pension Plan Contributions
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.…
The Loss of One-Half of Marital Assets in a Spousal Application for Medicaid Long-Term Care Insurance
Good to Know Married clients could lose one-half or more of their jointly owned countable assets when a spouse applies for Medicaid Long-Term Care insurance (LTCi). Countable assets1 include cash, publicly traded investments and other assets. Today, we’ll focus on creating the awareness needed to potentially avoid the loss of countable assets. But first, let’s…
Maximum Family Benefit
Course: Insurance Planning Lesson 10: Social Security Student Question: Does the maximum family benefit apply to a husband and wife that are both fully insured if the combined total between the two exceeds the maximum family limit? If I understand correctly, the maximum family limit only applies if there are beneficiaries within the family receiving…
Calculating Basis of Gifted Stock
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…
CFP Board appoints new Managing Director of Center for Financial Planning
CFP® Board Updates The CFP Board has named D.A. Abrams, CAE as the new Managing Director of the Center for Financial Planning. In this role, Mr. Abrams will provide leadership and vision to the Center as it continues its focus on diversity, inclusion, and sustainability of the financial planning profession. The CFP Board Center for…
Crummey Powers
Course: Insurance PlanningLesson 16: The Irrevocable Life Insurance Trust Student Question: Must Crummey powers always be in effect to apply the annual gift tax exclusion in order to transfer to an Irrevocable Trust? Or is it the case that as long as it was done once, will all transfers be eligible for the annual gift…
Fundamentals of a Will
Which of the following statements concerning a Will is incorrect? A will can be altered, amended, or completely rewritten at any time before a person’s death. A will cannot be rewritten but can be amended at any time by a codicil. A will must be signed by the maker and usually must be witnessed by…