Questions of the Week

Course: Estate PlanningLesson 13: Case Study Online Student Question: If a check given by Mary to Peter was deposited into a custodial acct where Mary was the custodian, doesn’t that mean that Mary didn’t give up ALL control, so it’s not a complete gift? Instructor Response: Generally, the donor must give up all ownership and…

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:…

Course: Income Tax PlanningLesson 10: Recognition of Expenses, Losses, and Deductions Student Question: Can you clarify 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. Instructor Response: An employee (W2 employee or statutory employee) can no longer deduct unreimbursed gifts to…

Course: Insurance PlanningLesson 17: Business Uses of Life and Disability Insurance Student Question: I have a quick question regarding buy/sell agreement. I’m not clear on 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…

Course: Retirement PlanningLesson 2: Qualified Plan Advantages and Disadvantages for Employees and Business Owners Student Question: Hi, I have a few questions regarding tort liability. Negligence is Tort Liability?  Why isn’t it contractual?  Are all torts criminal in nature?  Instructor Response: Hi, Good questions here.  See below for my response to each. Yes Tort law…

Course: Estate PlanningLesson 13: Case Study Online Student Question: Hi, I am a little confused how one set amount – $100 – is the threshold for means testing a bankruptcy petitioner, when the amount of debt a borrower may owe can vary by large amounts. It would seem the amount left over (income minus allowable…

Course: Investment PlanningLesson 9: Fixed Income Securities Student Question: Hi, Just a question about Corporate Bond Funds.  Gathering my information from the book, it seems they are “debt notes” insured to keep the company going.  If they are not repaid the person who accepted the “bonds” can sometimes take assets in the company, like equipment…

Course: Income Tax PlanningLesson 15: Property Transactions Student Question: Dear Greene Consulting Team – In the lesson, deducting donations of ‘cash’ versus ‘long term appreciated securities’ are differentiated.  I’m curious about “short term appreciated securities”.  In other words, if I own a stock – bought at $10,000 and it’s worth $50,000 when I donate, but…

Course: Estate PlanningLesson 13: Case Study Online Student Question: Hello- Marvin’s executor had to include the value of the custodial account in Marvin’s gross estate. Was that because Marvin was the donor or the custodian? Thanks Matt Instructor Response: Hi Matt, Good question; this can be confusing. Property is generally included in a U.S. citizen’s…

Course: Estate PlanningLesson 13: Case Study Online Student Question: Hello- I am a little confused how one set amount – $100 – is the threshold for means testing a bankruptcy petitioner, when the amount of debt a borrower may owe can vary by large amounts. It would seem the amount left over (income minus allowable…