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Net Unrealized Appreciation
Course: Retirement PlanningLesson 7: Income Distribution Planning for Qualified Plans Student Question: Regarding net unrealized appreciation, the value of company shares at the time of distribution would be considered the client’s cost basis in that any earnings in excess of that amount could be subject to short-term cap gains if sold within a year of…
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Who is an Investment Advisor?
Which of the following individuals need to register with the SEC under the Investment Advisers Act of 1940? Adam who retired last year from a big brokerage house but he recently started providing services to 12 clients who live in his neighborhood that he met while out golfing. Belinda who writes weekly investment articles for…
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Speak Now or Forever Hold Your Peace
CFP® Certificants in the News “Certified Financial Planner Board of Standards, Inc. (CFP Board) announced…that it is seeking public comment on proposed changes to CFP Board’s Procedural Rules. The proposed changes are intended to modernize CFP Board’s enforcement processes and further CFP Board’s work to uphold its Code of Ethics and Standards of Conduct (Code and Standards) for the…
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Value of Life Insurance in Buy-Sell Agreements
Course: Insurance PlanningLesson 17: Business Uses of Life Insurance Student Question: Do buy sell agreements accounts for projected growth of the company? Do the life insurance benefits increase over time to account for projected growth, or perhaps can they invest and grow conservatively to keep up with inflation (or COLA on the plan)? Instructor Response:…
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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…
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The CFP Board Exam and the 10-Year Rule
CFP® Certificants in the News CFP Board generally considers regulations fair game on the CFP Board exam if they become effective within six months of the exam date. Simple enough, right? As you might suspect, that’s not always the case. We’ll analyze the IRS’s recent re-interpretation of the stretch-IRA killing required distribution rules as a…
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Carryover Basis
Course: Income Tax PlanningLesson 15: Property Transactions Student Question: I have a question from this question below regarding the 1033 election for involuntary conversions. “Sparky’s office building was destroyed by fire on January 2nd of last year. The building had an adjusted basis of $620,000. On January 15th of this year, the insurance company paid…
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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…
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Four Reasons NOT to Rely on Social Security Disability Insurance
Good to Know You just asked your client about their long-term disability plan. They replied “I have that covered. I have Social Security Disability Insurance.” Here’s a hint for the rest of this article-your client probably does NOT have this risk “covered” if that’s the only disability insurance they have. There are at least four…
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