Questions of the Week

Course: Estate PlanningLesson 3: Understanding Trusts and Trust Documents Student Question: Hello- Perhaps a slightly mundane question, but here we go: It had been my understanding that property in a trust was held and owned by the trust itself, as a separate legal entity. However, several times in this course there has been reference to the trustee having…

Course: Investment PlanningLesson 14: Evaluation Portfolio Performance Student Question: Hello- I’m a little confused about the example (below) discussing an heirloom of only sentimental value. Why would this be titled at all for a will, especially since an earlier lecture said items of no value would pass through will as the situation does not involve…

Course: Income Tax PlanningLesson 16: Property Transactions Without Gain or Loss Recognition Student Question: Hello- Melvin gave $40,000 in cash plus real property with an adjusted basis of $30,000 (fair market value of $100,000) and received real property with a fair market value (FMV) of $150,000. In this transaction, Melvin would have no recognized gain,…

Course: Income Tax PlanningLesson 10: Recognition of Expenses, Losses, and Deductions Student Question: Hello- Question 5 (below) did not make sense to me. I started out by breaking down by year —  400,000/2,100,000*3,000,000 and so forth, but did not arrive at the correct answer.  So then I tried adding up 3 year —  400+650+700/2100000*3,000,000.  That…

Course: Fundamentals of Financial PlanningLesson 1: The Personal Financial Planning Process Student Question: Hello- I have a question on the example where it says a fee-only CFP Certificant cannot accept sales-related compensation such as commissions on the sale of life insurance products. Let’s say that a CFP Certificant recommended that the client go speak with…

Course: Insurance PlanningLesson 17: Business Uses of Life and Disability Insurance Student Question: Hello- 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? Thanks Emerito Instructor Response: Hi Emerito, Great question.  A buy-sell agreement relates to…

Course: Fundamentals of Financial PlanningLesson 7: Educational Aid and Funding Calculation Student Question: Hello- In Step 5: solving for LUMP SUM needed today… Step 5: Determine funding actually needed Lump sum needed TODAY to fund the full cost of college education. How come we are solving for PV and not PMT? Thanks Kelly Instructor Response: Hi…

Course: Fundamentals of Financial PlanningLesson 7: Educational Aid and Funding Calculation Student Question: Hello- So is there ever any benefit to choosing a Coverdell ESA over a 529 Plan? It seems the big difference in the two is that the Coverdell has an AGI limit, so why would you just not always steer clients towards 529 Plans…

Course: Estate PlanningLesson 1: Property Ownership Student Question: Hello- I’m a little confused about the example (below) discussing an heirloom of only sentimental value. Why would this be titled at all for a will, especially since an earlier lecture said items of no value would pass through will as the situation does not involve a…

Course: Insurance PlanningLesson 10: Social Security Student Question: Hi- When it comes to social security widower’s benefit’s, is the widow eligible to take his/her SS benefit early (age 62) and then switch over to the deceased spouse’s full benefit at 67? Or would the widow only be eligible for one of the two benefits? Thanks…