Student Question

Course: Estate Planning Lesson 5: Transfer Taxation II – Lifetime Transfers Student Question: Hi Bruce, I’m reading about the “expanded Annual Exclusion Amount of $155,000.” Just so I’m clear, is this an expansion from the “regular” $15,000 Annual Exclusion Amount? And what is it for? Thanks! Kevin Instructor Response: Hi Kevin, You are correct. The…

Course: Estate Planning Lesson 10: Application of Estate Planning Concepts Student Question: HI Bruce- Can you help clarify for me seemingly contradictory information in the two sentences below regarding “disinheriting children”? The first sentence seems to imply that the surviving spouse could disinherit children. However, the second sentence states that QTIPs are often used to…

Course: Insurance Planning Lesson 6: Commercial Property and Liability Insurance Student Question: Can you please provide an example of contingent business interruption and extra expense insurance? Laura Instructor Response: Hi Laura, Good question. Here’s how contingent business interruption insurance might apply. You own a nationwide chain of jewelry stores that specialize in gold/palladium alloys. Your…

Course: Insurance Planning Lesson 10: Social Security Student Question: Does the maximum family benefit apply to a husband and wife that are both fully insured if the combined total between the two exceeds the maximum family limit? If I understand correctly, the maximum family limit only applies if there are beneficiaries within the family receiving…

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…

Course: Insurance PlanningLesson 13: Life Insurance Policy Provisions and Conditions Student Question: Concerning the cash surrender option, is this stating that I can receive an amount of cash from my whole life policy based on premiums paid, accumulated dividends and interest earned minus any loan repayment with interest? And can I cash out at any…

Course: Insurance PlanningLesson 2: Insurance Planning Student Question: Are the defense fees in a liability case charged against the total liability that an insured carries? For example, I have a $100,000 liability policy. I have to pay $80,000 to the injured party. Legal fees on my behalf are $50,000.  Am I going to be out of pocket…

Course: Insurance PlanningLesson 8: Gift and Estate Valuation Student Question: Could you please clarify for me what the unused premium would be in term life insurance?  I don’t quite understand how you could not use the premium.  Thanks. John Instructor Response: Hey John- Certainly.   A lot of different terms in insurance, to be sure. Assume…

Course: Insurance PlanningLesson 2: Fundamentals of Insurance Student Question: For the question below, the answer was #3. Susan died yesterday, exactly ten years after a life insurance policy on her life was issued to her. The policy was in effect at her death. She understated her age on the initial policy application and the underwriter…

Course: Income Tax PlanningLesson 14: Tax Credits, Payments, and Forms Student Question: Could you show me the calculation for Question 3? I calculate 20% of $12,000 , which is $2,400. Emily’s job requires that she put her three children, all under the age of 13, in daycare. She is unmarried and files as Head of…