TOPIC LIST FOR CFP® CERTIFICATION EXAMINATIONThe following topics, based on the 1999 Job Analysis Study, are the basis for...
D.   Net Present Value (NPV)                 INSURANCE PLANNING AND                             E. Health Maintenance Orga...
D. Generation-Skipping Transfer                   1) Fringe benefits                      38. Non-qualified deferred compe...
M.   Real estate (investor-managed)           D. Appropriate benchmarks                       2) Short-term/long-term/   N...
1) Types                                   1) Cost basis                             A. Marriage        2) Limitations    ...
1) Benefits covered by Medicare              5) §403(b) plans                      ESTATE PLANNING (15%)      2) Benefits ...
B.   Care of client’s dependents           92. Charitable giving                                    d) Qualified family-ow...
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Cfp syllabus

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Cfp syllabus

  1. 1. TOPIC LIST FOR CFP® CERTIFICATION EXAMINATIONThe following topics, based on the 1999 Job Analysis Study, are the basis for the CFP® CertificationExaminations. Each exam question will be linked to one of the following topics, in the approximate per-centages indicated following the general headings. Questions may be at the evaluation level, which isthe highest cognitive level in Bloom’s taxonomy, or at any lower level. Questions often will be asked inthe context of the financial planning process.In addition to being used for the CFP® Certification Examination, this list indicates topic coveragerequirements to fulfill the pre-certification educational requirement, and the topics that will be grantedcontinuing education credit by CFP Board.(References to sections (§) in this list refer to sections of the Internal Revenue Code.)GENERAL PRINCIPLES OF 3. CFP Board’s Financial Planning Practice 10. Client attitudes and behavioralFINANCIAL PLANNING (13%) Standards characteristics A. Purpose and applicability A. Cultural1. Financial planning process B. Content of each series (use most B. Family A. Purpose, benefits and components current Practice Standards, as C. Emotional B. Steps posted on CFP Board’s Web site at www.CFP.net) D. Life cycle and age 1) Establishing client-planner E. Level of knowledge, experience relationships C. Enforcing through Disciplinary Rules and Procedures and expertise 2) Gathering client data and F. Risk tolerance determining goals and expectations 4. Personal financial statements A. Balance sheet (statement of 11. Educational funding 3) Determining the client’s A. Needs analysis financial status by analyzing financial position) and evaluating general B. Cash flow statement B. Tax credits and deductions financial status, special needs, C. Pro Forma statements C. Qualified state tuition plans insurance and risk manage- (§529 plans) ment, investments, taxation, 5. Budgeting D. Education IRAs employee benefits, retirement, A. Discretionary vs. non-discretionary E. Savings bonds or CDs and/or estate planning B. Financing strategies F. Government grants and loans 4) Developing and presenting the financial plan C. Saving strategies G. Other sources 5) Implementing the financial plan H. Ownership of assets 6. Emergency fund planning 6) Monitoring the financial plan I. Tax ramifications A. Adequacy of reserves C. Responsibilities B. Liquidity vs. marketability 12. Financial planning for special 1) Financial planner C. Liquidity substitutes circumstances 2) Client A. Divorce 3) Other advisors 7. Credit and debt management B. Disabilities A. Ratios C. Terminal illness2. CFP Board’s Code of Ethics and B. Consumer debt Professional Responsibility and D. Non-traditional families C. Home equity loan and home Disciplinary Rules and Procedures E. Job change and job loss, including equity line of credit A. Code of Ethics and Professional severance packages D. Secured vs. unsecured debt Responsibility F. Dependents with special needs E. Bankruptcy 1) Preamble and applicability F. Consumer protection laws 13. Economic concepts 2) Composition and scope A. Supply and demand 3) Compliance 8. Buying vs. leasing B. Fiscal policy 4) Terminology A. Calculation C. Monetary policy 5) Principles B. Adjustable and fixed-rate loans D. Economic indicators a) Principle 1 – Integrity C. Effect on financial statements E. Business cycles b) Principle 2 – Objectivity 9. Function, purpose and regulation of F. Inflation, deflation and c) Principle 3 – Competence disinflation financial institutions d) Principle 4 – Fairness G. Yield curve A. Banks e) Principle 5 – Confidentiality B. Credit unions f) Principle 6 – Professionalism 14. Time value of money concepts C. Brokerage companies and calculations g) Principle 7 – Diligence D. Insurance companies A. Present value 6) Rules E. Mutual fund companies B. Future value B. Disciplinary Rules and Procedures F. Other C. Ordinary annuity and annuity due
  2. 2. D. Net Present Value (NPV) INSURANCE PLANNING AND E. Health Maintenance Organization (HMO) E. Internal Rate of Return (IRR) RISK MANAGEMENT (10%) F. Irregular cash flows F. Medicare supplemental insurance 21. Principles of insurance G. Other G. Inflation adjusted earning rates A. Definitions and application H. Serial payments 27. Disability income insurance (individual) 1) Risk15. Characteristics and consequences of 2) Peril A. Occupational definitions and types of entities 3) Hazard application A. Sole proprietorship 1) Total 4) Law of large numbers B. Partnership 5) Adverse selection 2) Partial 1) General B. Response to risk 3) Residual 2) Limited B. Benefit period 1) Retain 3) Limited Liability Partnership (LLP) 2) Transfer C. Elimination period 4) Family Limited Partnership (FLP) D. Benefit amount 3) Control C. Limited Liability Company (LLC) 4) Reduce E. Riders D. Corporation 5) Avoid F. Taxation of benefits 1) S corporation C. Mortality vs. morbidity 28. Long-term care insurance 2) C corporation (individual and joint) 3) Professional Corporation (PC) 22. Analysis and evaluation of risk exposures A. Basic provisions E. Association B. Eligibility A. Personal F. Trust C. Benefit amount and period 1) Death G. Selection of business form D. Elimination period 2) Disability H. Acquisition and disposition E. Inflation protection 3) Poor health 4) Unemployment F. Nursing home and in-home care16. Characteristics and consequences of property titling G. Comparing and selecting policies 5) Outliving one’s capital A. Common law vs. community property B. Property H. Tax implications and qualification B. Sole ownership 1) Real I. Appropriateness of coverage C. Joint tenancy with right of 2) Personal 29. Life insurance survivorship (JTWROS) 3) Auto A. Fundamentals D. Tenancy by the entireties C. Liability B. Types E. Tenancy in common 1) Negligence C. Contractual provisions F. Trust ownership 2) Libel D. Dividend options G. Uniform Transfers to Minors Act 3) Slander (UTMA) and Uniform Gifts to E. Non-forfeiture and other options Minors Act (UGMA) 4) Malpractice F. Settlement options D. Business-related risks G. Policy replacement17. Financial services industry regulation E. Calculation of benefits requirements H. Tax issues and strategies A. Registration and licensing 23. Legal aspects of insurance I. Policy ownership issues and strategies, including split-dollar B. Reporting A. Indemnity C. Compliance B. Insurable interest 30. Viatical settlements D. State securities and insurance laws C. Contract requirements A. Legal principles D. Contract characteristics B. Requirements18. Business Law C. Tax implications A. Contracts 24. Property and casualty insurance (individual and business) D. Planning B. Torts E. Ethical concepts and planning C. Agency A. Real property D. Negotiable instruments B. Automobile and recreational 31. Insurance needs analysis and vehicles rationale E. Professional liability C. Business A. Life insurance amount required F. Fiduciary liability D. Business activity 1) Liquidity and survivor income G. Arbitration and mediation E. Personal property needs19. Quantitative analysis F. Umbrella liability 2) Human life value A. Probability analysis 3) Capital retention 25. General business liability B. Modeling and simulation B. Disability insurance A. Professional liability C. Sensitivity analysis C. Long-term care insurance B. Errors and omissions D. Health insurance20. Monetary settlement planning C. Directors and officers E. Property insurance A. Structured settlements D. Product liability F. Liability insurance B. Legal settlements 26. Health insurance (individual) C. Lottery winnings and monetary 32. Taxation of life, disability and windfalls A. Hospital-surgical long-term care insurance D. Lump sum retirement B. Major medical A. Income distributions C. Traditional indemnity B. Gift E. Insurance proceeds D. Preferred Provider Organization (PPO) C. Estate F. Other
  3. 3. D. Generation-Skipping Transfer 1) Fringe benefits 38. Non-qualified deferred compensation Tax (GSTT) 2) Voluntary Employees A. Basic provisions and differences E. Ownership issues Beneficiary Association (VEBA) from qualified plans F. Beneficiary issues 3) Salary continuation plans B. Types of plans and applications G. Withdrawals 4) Prepaid legal services 1) Supplemental Executive 5) Group long-term care Retirement Plans (SERPs)33. Insurance policy selection insurance 2) Rabbi trusts A. Purpose of coverage 6) Other 3) Secular trusts B. Length of time required 4) Hybrids C. Risk tolerance 36. Employee stock options C. Tax implications D. Cash flow constraints A. Basic provisions 1) Constructive receipt 1) Company restrictions34. Insurance company selection and due 2) Substantial risk of forfeiture 2) Transferability diligence D. Funding methods 3) Retirement A. Financials E. Strategies 4) Vesting schedule B. Ratios 5) Expiration 39. Employer/employee insurance arrange- C. Ratings ments 6) Availability to non-employees D. Mutual vs. stock (directors, board members, etc.) A. Business continuation (buy/sell) plans E. Reinsurance 7) Cashless exercise B. Business overhead disability plan F. Investments B. Incentive Stock Options (ISOs) C. Executive/owner benefits (§162) G. Underwriting 1) Income tax implications D. Split-dollar H. Federal and state law (regular, AMT, basis) E. Key employee insurance a) Upon grant F Transfer of ownership and tax issues .EMPLOYEE BENEFITS b) Upon exercisePLANNING (8%) c) Upon sale INVESTMENT PLANNING (19%)35. Employee benefit plans 2) Holding period requirements 40. Types and use of investment vehicles A. Group life insurance 3) Disqualifying dispositions A. Certificates of deposit and cash 1) Types and basic provisions 4) Planning opportunities and equivalents strategies a) Group term B. U.S. Government and agency b) Group permanent C. Non-qualified stock options securities 1) Income tax implications 1) Bills, notes and bonds c) Dependent coverage (regular, AMT, basis) 2) Income tax implications 2) Inflation-adjusted securities a) Upon grant 3) Employee benefit analysis and 3) Treasury strips application b) Upon exercise C. Municipal bonds c) Upon sale B. Group disability insurance 1) General obligation 1) Basic provisions and 2) Gifting opportunities 2) Revenue limitations a) Unvested/vested D. Corporate bonds a) Definitions of disability b) Exercised/unexercised 1) Investment grade b) Own occupation limits c) Gift tax valuation 2) High-yield c) Integration with Social d) Payment of gift tax 3) Convertible Security, workers’ compen- 3) Planning opportunities and sation or other income strategies 4) Callable d) Income tax implications 4) Employee benefits analysis and E. Promissory notes 2) Employee benefit analysis and application F. Insurance-based investments application D. Planning strategies for employees 1) Guaranteed Investment C. Group medical insurance with both incentive stock options Contracts (GICs) 1) Types and basic provisions and non-qualified stock options 2) Annuities E. Election to include in gross income in a) Fixed a) Indemnity the year of transfer (§83(b) election) b) Variable b) Preferred Provider Organization (PPO) 37. Stock plans G. Stock c) Health Maintenance A. Employee Stock Purchase Plans 1) Common Organization (HMO) (ESPPs) 2) Preferred d) Dental and vision plans 1) Basic provisions 3) Warrants and rights 2) Income tax implications 2) Income tax implications H. Derivatives 3) Employee benefit analysis and 3) Special tax benefits 1) Options application 2) Futures 4) Employee benefit analysis and 4) COBRA provisions application I. Exchange traded funds D. Cafeteria plans and flexible spend- B. Phantom stock and other J. Index securities ing accounts employee stock plans K. Investment companies 1) Basic provisions and eligible 1) Basic provisions benefits 1) Unit investment trusts 2) Income tax implications 2) Income tax implications 2) Open-end mutual funds 3) Special tax benefits 3) Employee benefit analysis and 3) Closed-end investment 4) Employee benefit analysis and companies application application E. Other employee benefits L. Real Estate Investment Trust (REIT)
  4. 4. M. Real estate (investor-managed) D. Appropriate benchmarks 2) Short-term/long-term/ N. Private placements/venture capital E. Time- vs. dollar-weighted rate unrealized capital gains O. Limited partnerships of return B. Stocks P. Asset-backed securities F. Probability analysis, including 1) Tax management Monte Carlo 2) Wash sale rule Q. Natural resources R. Tangible assets 47. Formula investing C. Bonds S. American Depository Receipts (ADR) A. Dollar-cost averaging 1) Taxable Equivalent Yield (TEY) B. Dividend reinvestment 2) Premium/discount41. Types of investment risk considerations C. Bond ladders and barbells A. Inflation 3) SEC yield D. Other B. Interest rate 55. Investment strategies in tax- C. Market 48. Investment strategies advantaged accounts D. Business A. Market timing A. Capital gain vs. ordinary income E. Liquidity B. Passive investing (indexing) B. Tax advantages F. Reinvestment C. Fundamental analysis C. Net Unrealized Appreciation (NUA) G. Political (sovereign) D. Buy and hold D. Appropriate assets for tax-advan- H. Exchange rate E. Portfolio immunization taged vs. taxable accounts F. Swaps and collars42. Measures of investment risk 56. Taxation of investment vehicles G. Technical analysis A. Coefficient of determination (R2) A. Mutual funds H. Efficient market anomalies B. Variability of returns 1) Basis determination I. Other C. Standard deviation 2) Taxation D. Beta 49. Asset allocation and portfolio B. Stocks E. Covariance diversification 1) Dividends F. Semi-variance A. Strategic asset allocation 2) Basis determination 1) Application of client 3) Capital gains/losses43. Measures of investment returns lifecycle analysis (long vs. short) A. Annualized return 2) Client risk tolerance measure- 4) Liquidations B. Real (inflation-adjusted) return ment and application 5) Stock splits/dividends C. Total return 3) Asset class definition and correlation 6) Warrants and rights D. Risk-adjusted return 7) Other B. Tactical asset allocation E. After-tax return (re-balancing strategies) C. Bonds F. Holding period return C. Passive vs. active portfolio manage- 1) U.S. Government G. Internal Rate of Return (IRR) ment 2) Agency H. Yield-to-maturity D. Individual stock selection 3) Municipal I. Yield-to-call E. Strategies for dealing with concen- 4) Zero-coupon J. After-tax yield trated portfolios 5) Treasury Inflation-Protection K. Realized compound yield Securities (TIPS) 50. Efficient Market Theory (EMT) D. U.S. savings bonds44. Time-influenced security valuation A. Strong form concepts E. Annuities B. Semi-strong form A. Net present value F. Limited partnership C. Weak form B. Future value G. Unit investment trust D. Anomalies C. Bond duration and convexity H. Other D. Internal Rate of Return (IRR) 51. Asset pricing models A. Capital Asset Pricing Model (CAPM) INCOME TAX PLANNING (17%)45. Bond and stock valuation methods B. Multi-factor Asset Pricing 57. Income tax law fundamentals A. Capitalized earnings Model (APM) A. Sources of authority B. Dividend growth models C. Option pricing model (Black-Scholes) 1) Primary C. Ratio analysis 2) Secondary 1) Price/earnings D. Binomial option pricing E. Other B. Research sources 2) Price/free cash flow 3) Price/sales 52. Leverage of investment assets 58. Tax compliance 4) Price/Earnings/Growth (PEG) A. Margin requirement A. Filing requirements D. Intrinsic value B. Margin calls B. Authority to represent clients E. Book value before the IRS (Circular 230) 53. Hedging and option strategies C. Audits46. Portfolio management and A. Options D. Penalties measurement concepts B. Puts and calls A. Modern portfolio theory 59. Income tax fundamentals and C. Short sales calculations B. Performance measures 1) Sharpe ratio 54. Tax efficient investing A. Filing status 2) Treynor ratio A. Mutual funds B. Gross income 3) Jensen ratio 1) Turnover C. Adjusted gross income C. Investment policy statements D. Itemized deductions
  5. 5. 1) Types 1) Cost basis A. Marriage 2) Limitations 2) Half-year convention 1) Filing status E. Personal and dependency 3) Mid-quarter convention 2) Children exemptions B. Repairs 3) Common law and F. Taxable income C. Special elections (§179) community property G. Tax liability D. Amortization B. Divorce H. Tax credits 1) Alimony I. Payment of tax 65. Tax consequences of like-kind 2) Child support exchanges J. Estimated payments and 3) Qualified Domestic Relations withholding requirements A. Reporting requirements Order (QDRO) K. Kiddie tax B. Qualifying transactions C. Death (final income tax return) L. Imputed income C. Multiple properties D. Liabilities 71. Charitable contributions and60. Tax accounting methods deductions E. Boot A. Cash method A. Qualified entities F. Related party transactions B. Accrual method 1) Public charities C. Hybrid method 66. Tax consequences of gain or loss on 2) Private charities sale of assets B. Deduction limitations D. Long-term contracts A. Holding period C. Carryover periods E. Installment sales B. Sale of residence D. Appreciated property and the AMT F. Accounting periods 1) Reporting E. Partial interest gifts to charity G. Method changes (entity) 2) Exclusion F. Non-deductible contributions61. Tax characteristics of entities C. Capital assets (§1221) G. Appraisals A. Taxation at entity level D. Depreciation recapture H. Substantiation requirements B. Flow-through of income and losses 1) Personal or real property used I. Charitable contributions by to shareholders in trade or business (§1231) business entities C. Special taxes at entity level for 2) Rules for personal property flow-through entities (§1245) RETIREMENT PLANNING (18%) 1) Built-in gains tax 3) Rules for real property (§1250) 2) LIFO recapture E. Related parties 72. Retirement needs analysis 3) Excess net passive income tax F. Wash sales A. Assumptions for retirement planning 4) Personal holding company tax G. Bargain sales 1) Inflation 5) Other H. §1244 stock (small business stock election) 2) Retirement period and D. Use of losses life expectancy E. Taxation at dissolution 67. Alternative Minimum Tax (AMT) 3) Lifestyle62. Income taxation of trusts and estates A. Individual and corporate AMT 4) Total return A. General issues 1) Mechanics B. Financial needs 1) Filing requirements 2) Preferences and adjustments 1) Living costs 2) Deadlines 3) Exclusion items vs. deferral 2) Charitable and beneficiary items gifting objectives 3) Choice of taxable year 4) Credit (creation, usage and 3) Medical costs, including long- 4) Tax treatment of distributions term care needs analysis limitations) to beneficiaries B. Small business exemption 4) Other (trust and foundation 5) Rate structure funding, education funding, etc.) B. Grantor trusts 68. Tax management techniques C. Income sources C. Simple trusts A. Tax credits 1) Total return assumptions D. Complex trusts B. Alternative Minimum Tax (AMT) 2) Probabilistic analysis E. Trust income planning assumptions 1) Trust accounting income 1) Incentive Stock Options (ISOs) D. Alternatives to compensate for 2) Trust taxable income 2) Charitable gifts projected cash-flow shortfalls 3) Distributable Net Income (DNI) 3) Stock redemption agreements 73. Social Security [Old Age, Survivor, and F. Estate income tax C. Accelerated deductions Disability Insurance (OASDI)] D. Deferral of income A. Eligibility and benefit63. Basis E. Estimated taxes and withholdings 1) Retirement A. Original basis F. Net operating losses B. Adjusted basis 2) Disability C. Original issue discount 69. Passive activity and at-risk rules 3) Survivor D. Carryover basis A. Definitions 4) Family limitations E. Step-up in basis B. Computations B. How benefits are calculated F. Impact of community property and C. Treatment of disallowed losses C. Working after retirement common law on basis D. Disposition of passive activities D. Taxation of Social Security E. Real estate exceptions 74. Medicare64. Cost-recovery concepts A. Modified Accelerated Cost 70. Tax implications of changing A. Eligibility Recovery System (MACRS) circumstances B. Coverage provided by Parts A and B
  6. 6. 1) Benefits covered by Medicare 5) §403(b) plans ESTATE PLANNING (15%) 2) Benefits not covered under 6) §457 plans Medicare 82. Methods of property transfer B. Basic provisions at death C. Cost of coverage 1) Eligibility A. The probate process75. Types of retirement plans 2) Contribution limits 1) Testate succession A. Characteristics 3) Deductibility 2) Intestate succession 1) Qualified plans 4) Distribution options 3) Advantages and 2) Non-qualified plans disadvantages of probate 78. Regulatory considerations 3) Government plans (§457 plans) 4) Assets subject to probate A. Employee Retirement Income B. Types of qualified plans Security Act (ERISA) 5) Techniques of avoiding probate 1) Defined contribution B. Department of Labor (DOL) 6) Ancillary probate a) Money purchase regulations B. Operation of law (title) b) Profit-sharing C. Fiduciary obligations C. Transfers through trusts (age-weighted, 401(k), D. Prohibited transactions D. Transfers by contract ESOP, etc.) E. Reporting requirements c) Target benefit 83. Estate planning documents 2) Defined benefit 79. Plan selection for businesses (key A. Wills factors affecting selection) 1) Legal requirements a) Traditional A. Owner’s personal objectives 2) Types of wills b) Cash balance 1) Tax considerations 3) Avoiding will contests76. Qualified plan rules and options 2) Capital needs at retirement B. Powers of attorney A. Feasibility of installation of a 3) Capital needs at death 1) For health care qualified plan B. Business’ objectives 2) For property 1) Client objectives 1) Tax considerations 3) Durable feature 2) Constraints 2) Cash flow situation and outlook 4) Special or limited powers B. Qualified plan coverage and 3) Employee demographics 5) General powers eligibility requirements 4) Comparison of defined C. Advance medical directives 1) Age and service requirements contribution and defined (e.g., living wills) 2) Coverage requirements benefit plan alternatives D. Trusts 3) Minimum participation 80. Investment considerations for E. Marital agreements 4) Highly compensated retirement plans F. Business agreements 5) Controlled group A. Suitability G. Other C. Qualified plan vesting schedule B. Time horizon 1) Types 84. Gifting strategies C. Fiduciary considerations 2) Top-heavy plans A. Suitability of gifting as a D. Prohibited transactions D. Integration with Social Security/ planning strategy E. Unrelated Business Taxable Income disparity limits B. Techniques for gift-giving (UBTI) 1) Defined benefit plans C. Appropriate gift property F. Life insurance 2) Defined contribution plans D. Strategies for closely-held E. Factors affecting qualified plan 81. Distribution rules, alternatives business owners contributions or benefits and taxation E. Gifts of present and future 1) Tax considerations A. Premature distributions interests 2) Nature of defined contribution 1) Penalties F. Tax implications 3) Nature of defined benefit 2) Substantially equal payments 1) Income 4) Comparison of defined contri- (§72(t)) 2) Gift bution and defined benefit B. Election of distribution options 3) Estate 5) Definition of compensation 1) Lump sum distributions 4) Generation-Skipping Transfer 6) Multiple plans 2) Annuity options Tax (GSTT) 7) Special rules for self-employed 3) Rollover 85. Gift taxation and compliance (non-corporations) 4) Direct transfer A. Filing requirements F. Top-heavy plans C. Required minimum distributions B. Calculation 1) Definitions 1) Rules 1) Annual exclusion and 2) Vesting 2) Calculations applicable credit 3) Effects on contributions 3) Penalties 2) Split gifts or benefits D. Beneficiary considerations 3) Prior taxable gifts G. Loans from qualified plans E. Qualified Domestic Relations Order 4) Education and medical (QDRO) exclusions77. Other tax-advantaged retirement plans F. Taxation of distributions 5) Marital and charitable A. Types 1) Waiver deductions 1) Traditional IRA 2) Cost basis recovery 6) Tax liability 2) Roth IRA, including conversion analysis 86. Incapacity planning 3) SEP A. Definition of incapacity/ 4) SIMPLE disability
  7. 7. B. Care of client’s dependents 92. Charitable giving d) Qualified family-owned C. Care of person and property A. Considerations for contributions business exclusion (§2057) D. Disability insurance and transfers D. Optimal QTIP planning E. Long-term care insurance B. Requirements for a gift to qualify for a charitable deduction 97. Intra-family and other business F. Medicaid planning transfer techniques C. Charitable remainder trusts G. Viatical settlements A. Characteristics 1) Unitrusts (CRUT) H. Business disability coverage B. Techniques 2) Annuity trusts (CRAT) I. Social Security disability benefits 1) Buy-sell agreements D. Charitable lead trusts 2) Installment notes87. Estate tax calculation and compliance 1) Unitrusts (CLUT) 3) Self-canceling installment notes A. The gross estate 2) Annuity trusts (CLAT) 4) Private annuities 1) Inclusions E. Pooled income funds 5) Transfers in trust 2) Exclusions F. Private foundations C. Federal income, gift, estate and B. Deductions G. Other types of charitable gifts Generation-Skipping Transfer Tax C. Adjusted Gross Estate (AGE) H. Income tax charitable deduction (GSTT) implications D. Deductions from the adjusted limitations gross estate 98. Disposition of estate 93. Use of life insurance in estate planning A. Tax and non-tax consequences E. Taxable estate A. Advantages and disadvantages of various estate plans (outright F. Adjusted taxable gifts rule B. Ownership, beneficiary distributions, transfers in trust, etc.) G. Tentative tax base designation and settlement B. Estate planning for H. Tentative tax calculation options non-traditional relationships I. Credits C. Life insurance trusts 1) Children of another 1) Gift tax payable D. Gift and estate taxation relationship 2) Unified credit E. Income taxation 2) Cohabitation 3) Prior transfer credit 3) Adoptions 4) State death tax 94. Valuation issues 4) Same-sex relationships A. Estate freezes 5) Communal relationships88. Satisfying liquidity needs 1) Corporate and partnership A. Sale of assets recapitalizations (§2701) 99. Generation-Skipping Transfer Tax (GSTT) B. Life insurance 2) Transfers in trust A. Identify transfers subject to the C. Other B. Valuation issues with family GSTT partnerships and LLCs 1) Direct skips89. Powers of appointment 1) Minority discounts 2) Taxable distributions A. Use and purpose 2) Marketability discounts 3) Taxable terminations B. General and special (limited) powers 3) Blockage discounts B. Impact of the GSTT on lifetime 1) 5+5 power 4) Key person discounts transfers 2) Crummey provisions C. Valuation techniques and the 1) Outright transfers of cash or 3) Distributions for health, educa- federal gross estate property tion, maintenance and support 2) Transfers in trust 4) Other 95. Marital deduction C. Exemptions and exclusions for the C. Tax implications A. Characteristics GSTT B. Terminable interest rule and 1) Outright gifts qualifying for90. Types, features and taxation of trusts exceptions the gift tax annual exclusion A. Classification C. QTIP planning and the prior 2) The GSTT exemption 1) Simple and complex transfer credit 3) Qualified transfer payments 2) Revocable and irrevocable D. Special planning for non-citizen (educational and medical) spouses B. Rule against perpetuities E. Marital deduction and by-pass 100. Fiduciary responsibilities C. Selected provisions planning A. Duties of fiduciaries 1) Spendthrift clauses B. Selection of fiduciaries 2) Perpetuity clauses 96. Deferral and minimization of estate 3) Other taxes 101. Income in Respect of a Decedent (IRD) D. Taxation of trusts and estates A. Deductions and credits A. IRD assets (income, gift and estate) B. Lifetime planning techniques B. IRD income tax deduction C. Postmortem planning techniques91. Qualified interest trusts 1) Qualified disclaimers A. Grantor Retained Annuity Trusts 2) Alternative valuation date (GRATs) 3) Relief provisions for business B. Grantor Retained Unitrusts (GRUTs) owners’ and farmers’/ C. Qualified Personal Residence Trusts ranchers’ estates (QPRTs or House-GRITs) a) Deferral of estate tax D. Tangible personal property trusts (§6166) E. Limitations on the valuation of b) Corporate stock remainder interests of qualified redemptions (§303) interest trusts (§2702) c) Special use valuation (§2032A)

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