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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…
Characteristics of a Will
Which of the following statements concerning a Will are correct? 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…
Advanced Roth Strategies—Part II of II
Good to Know This article continues our goal to create or deepen a financial advisor’s awareness of the creative use of Roth IRAs or Designated Roth Accounts in special circumstances such as: Resolving the tension between building an emergency reserve and saving for retirement, Reducing income taxes on Social Security Benefits for retirees, and Lowering…
Distributable Net Income Application
Course: Estate PlanningLesson 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…
Basis on Sale 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…
Results From March CFP Board Exam
CFP® Certificants in the News The results are in. We saw a continuation of existing trends and at least one surprise from the results of the March 2023 CFP Board Exam, including: Number of examinees taking the exam, Primary reason for taking the exam, Employer-provided financial support. Number of Examinees Taking the Exam An impressive…
Home Mortgage Interest Deduction
Course: Income Tax PlanningLesson 8: Arriving at Taxable Income Student Question: If a client has a $250k mortgage on a home worth $500k and they refinance to take equity out of their home, say $100k. Then they use that $100k to purchase a vacation home worth $300k (so they now have $450k in mortgage debt),…
Medicare Part A Expenses
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…
Advanced Roth Strategies—Part I of II
Good to Know This article is intended to create or deepen a financial advisor’s awareness of the creative use of Roth IRAs or Designated Roth Accounts in special circumstances such as: Business Owners with Net Operating Losses and High-Income Clients that are ineligible for a Roth IRA contribution. Caveat-this article is meant to raise awareness…