Blog
Owner of a Grantor Trust
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…
Read More
Penalty-Free Withdrawals for Domestic Abuse Survivors
Good to Know Domestic abuse happens far too frequently and more often than is commonly thought. The National Institute of Health warns that: One of every four women “will experience physical violence…by their intimate partner at some point during their lifetime.” The incidence of physical violence against men by their intimate partners is lower but…
Read More
Vested versus Contingent Beneficiary
Course: Estate PlanningLesson 3: Understanding Trusts and Trust Documents Student Question: In the example, I would think Northwestern would have a future, contingent interest, as their interest is dependent upon the death of the wife. But the feedback tells me it’s a vested interest. Do we assume death is inevitable, and therefore not a contingent-worthy…
Read More
Power of Attorney over Financial Affairs
Laura is concerned she will develop Alzheimer’s disease later in life similar to her mother. Which of the following documents should Laura execute to make sure her son is able to handle her financial affairs in the event she does develop Alzheimer’s disease? Durable springing power of attorney Nondurable springing power of attorney Durable nonspringing…
Read More
CFP Board Elects Three New Directors
CFP® Board Updates On October 19, 2023, the CFP Board announced that its Board of Directors elected three new members: Malik Lee, CFP®, Linda Leitz, CFP® and Elisse Walter. The Board of Directors is the policymaking and oversight body of CFP Board of Standards and CFP Board Center for Financial Planning and acts on behalf…
Read More
Premium Payments on Buy-Sell Agreements
Course: Insurance PlanningLesson 17: Business Uses of Life and Disability Insurance Student Question: I have a quick question regarding buy/sell agreement; not clear who would pay the premiums on disability and or life insurance on the principals and the key employees? Instructor Response: Great question. A buy-sell agreement relates to owners of the business while…
Read More
Refinance Payment Calculation
Lisa refinanced her home mortgage to a 30-year fixed mortgage with biweekly payments. How much is each payment if she owed $550,000 at the time of the refinance and the interest rate is 3.5%? $943 $1,139 $1,321 $1,453 CLICK TO REVEAL ANSWER Expand B is the answer. Lisa pays her mortgage every two weeks which…
Read More
Early Holiday Gifts from Secure 2.0 Act
Good to Know Secure 2.0 Act is dramatically more impactful than is commonly appreciated. Not-to-be-missed “gift” opportunities range from employer 401(k) plan matches for student loan repayments to Roth account rollovers from 529 plans and more. This article will summarize the most powerful opportunities. Employer 401(k) Match for Student Loan Repayments Employers have the…
Read More
Social Security Retirement Benefits
Course: Investment PlanningLesson 14: Evaluation Portfolio Performance Student Question: This question (below) doesn’t quite make sense to me. Could you clarify why the correct answer is D? Robin Elizabeth qualifies for a retirement benefit of $250 and a spouse’s benefit of $400. At her full retirement age, she will receive which of the following? Instructor Response:…
Read More