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Gifts Added Back to Estate at Death
Course: Estate PlanningLesson 5: Transfer Taxation II Lifetime Transfers Student Question: If the gift tax is paid what is the need to add the gift back to the estate at death? is that not double taxation? Instructor Response: It certainly feels that way, doesn’t it? But it’s really not. If I give away say $1million…
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HO-3 Coverage A
Maria owns a single-family home insured under an HO-3 homeowners’ policy. Which of the following is covered under Coverage A – Dwelling? Damage to Maria’s detached garage caused by a windstorm Damage to Maria’s personal property inside the home caused by fire Replacement of the roof of Maria’s home after a hailstorm Medical payments to…
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CFP Board Reviews Competency Standards: What This Means for the Future of CFP® Certification
CFP® Board Updates In June 2025, the CFP Board opened a public comment period to gather feedback on proposed revisions to its Competency Standards – the foundational framework that defines what CFP® professionals must know and demonstrate to serve clients ethically and effectively. Although the August 5 comment deadline has now passed, this initiative marks…
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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 tax exclusion?…
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Tax Avoidance versus Evasion
Which of the following scenarios best illustrates tax avoidance rather than tax evasion? Sarah intentionally underreports her cash income from a side business to reduce her taxable income. Tom invests in a municipal bond fund to receive tax-free interest income. Lisa pays her household employee in cash and does not issue a Form W-2 or withhold…
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CFP Board Survey Reveals Financial Misinformation Crisis: Why CFP® Professionals Matter Now More Than Ever
CFP® Board Updates In June 2025, the CFP Board released results from its latest national survey titled: “Steering Clear of Financial Misinformation: A Survey of Americans.” The findings were striking – and a wake-up call for financial professionals everywhere. Key Findings from the CFP Board Survey 57% of Americans say they’ve made financial decisions they…
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Skip Persons and the Generation Skipping Transfer Tax
Course: Estate PlanningLesson 7: Transfer Taxation IV – Generation Skipping Transfers Student Question: Regarding example below, would the death of the father, Stephen, not move Andrew one step up making him only one generation below Mrs. Jones? Would this not remove the generation skipping transfer tax? EXAMPLE: Upon her death, Mrs. Jones left her estate…
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Appropriate Emergency Fund
James and Lisa are married, both age 40, with two children. They have the following monthly expenses: Mortgage: $2,500 Utilities: $400 Groceries: $1,000 Car loans: $600 Insurance premiums: $500 Discretionary spending: $900 They both have stable jobs and contribute equally to a combined gross income of $190,000/year. According to CFP Board recommendations, how much should…
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CFP Board Appoints New Technology Leader: What It Means for the Future of Financial Planning
CFP® Board Updates On June 17, 2025, the CFP Board announced the appointment of Barry S. Gersten as its new Head Technology Officer – a strategic leadership role that signals where the profession is heading: deeper integration of technology, innovation, and digital enablement across all areas of CFP® education and certification. This appointment isn’t just…
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