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Section 303 Redemption
A Sec. 303 redemption is most likely appropriate for which of the following estates? At Fred’s death, Fred owned all of his assets including the stock of a closely-held corporation in joint tenancy WROS with his wife. Before Gloria’s death, she transferred all of her assets including the stock in a closely-held corporation to an…
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Validating and Measuring Competency
CFP® Board Updates For the past decade or so, the CFP Board has been putting an increased emphasis on the importance of being able to validate and measure competency for CFP Professionals. While the certification itself signifies that someone has mastered the required body of knowledge, that knowledge alone isn’t enough to truly become a…
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Deducting Advisory Fees
Course: Income Tax PlanningLesson 10: Recognition of Expenses, Losses, and Deductions Student Question: Hi I read that advisory fees are no longer deductible. So in this question (below), is it deductible because this is treated as a business deduction since Roger is Self-Employed? Alisha Sheridan, A CFP licensee and fee-only financial planner, has assisted Roger…
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Identifying Monetary Policy
Which of the following is a monetary policy that will tighten the money supply? Sell government securities Lower the discount rate Decrease government spending Increase taxes CLICK TO REVEAL ANSWER Expand A is the answer. Selling government securities is a monetary policy that will tighten the money supply as the cash used to purchase the…
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Powers of Attorney – Autonomy vs. Protection
Good to Know CFP Board expects CFP® Certificants to understand how to protect a client’s assets and guide health care decisions in the event of incapacity. Let’s make this personal – who would make medical decisions for you if you were temporarily unconscious or suffering from a debilitating disease such as Alzheimer’s? How about financial…
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Deducting Gifts to Customers
Course: Income Tax PlanningLesson 10: Recognition of Expenses, Losses, and Deductions Student Question: Hi Can you clarify for me the deductibility of gifts when we’re talking about employees of a business versus self-employed individuals? It seems the rules have changed on these. Thanks for your help. Kyle Instructor Response: Hi Kyle, Thank you for the…
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Life Insurance in the Gross Estate
Which of the following assets would be included in Martin’s gross estate? Life insurance on Martin’s life purchased one year before he died by the trustee of Martin’s irrevocable life insurance trust. Life insurance on Martin’s life purchased by Martin’s wife two years before he died. Life insurance on Martin’s life purchased three years before…
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CFP Board of Directors Positions Open
CFP® Certificants in the News Here is your chance to add your client-facing, practical financial planning perspective to CFP Board’s governing body in 2022. The following excerpt was taken from the CFP BOARD REPORT published on May 20, 2021. “CFP Board is now accepting applications from individuals interested in serving on CFP Board’s Board of…
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Required Insurance Penalty and Reimbursement
Course: Insurance Planning Lesson 6: Commercial Property and Liability Insurance Student Question: Hi Dan – On this review page, the correct answer for question 2 (below) indicates that insurance will only over 97% of replacement cost. However, it says in the chapter that as long as the property is insured for more than 80% of…
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