Estate Planning Essentials - 16 CPE Credit Hours
"Just the facts ma'am; just the estate planning facts." Designed to give a quick overview of estate planning essentials, this course surveys wills, living trusts, gifts, marital property, and probate avoidance with an Internet flair. Will and trust types are examined in the context of general estate and gift taxation. Designed to eliminate estate problems and death taxes, the emphasis is on practical solutions that are cost effective. Talk about having it all in an overview course - there is even a quick review of immediate postmortem death tax planning and filling out the Form 706.
Completion Deadline & Exam: This course, including the examination, must be completed within one year of the date of purchase. In addition, unless otherwise indicated, no correct or incorrect feedback for any exam question will be provided.
Course Level: Overview. This program is appropriate for professionals at all organizational levels.
Field of Study: Taxes
Prerequisite: General understanding of federal income taxation.
Advanced Preparation: None
Learning Assignments & Objectives
As a result of studying each assignment, you should be able to meet the objectives listed below each assignment.
Chapter 1 Estate Planning
At the start of Chapter 1, participants should identify the following topics for study:
* Build, preserve & distribute
* Legal documents
* Estate planning team
* Estate administration
* Transfers within probate
* Transfers outside probate
* Transfers using a trust
* Special planning tools
After reading Chapter 1, participants will be able to:
1. List three basic elements of estate planning to show clients the wide spectrum of estate planning, recognize the importance of well-drafted legal documents and name the key team participants defining their roles in estate planning process.
2. Outline the probate process to guide clients through an average probate, identify ways to make transfers outside the probate system including the use of a trust, list sixteen estate tax techniques that save death taxes while retaining maximum control, and outline estate-planning facts into three categories to develop an information base for an estate plan.
After studying the materials in Chapter 1, answer the exam questions 1 to 6.
Chapter 2 Estate & Gift Taxes
At the start of Chapter 2, participants should identify the following topics for study:
* Taxable estate
* IRS valuation
* Estate tax return & payment
* Tax basis for estate assets
* Generation-skipping transfer tax
* Application of gift taxes and valuation
* Gift tax annual exclusion
* Gift tax marital and charitable deductions
* Gift tax advantages and disadvantages
* Shifting income & gain
After reading Chapter 2, participants will be able to:
1. List the eight potential death taxes differentiating federal estate tax as it applies to various size estates, identify two principal taxes that impact how individuals are taxed at death, and state the expiration of the state death tax credit.
2. Define taxable estate under §2501 and identify what assets are included in a gross estate using the four basic categories of property and transfers.
3. Name four estate deductions allowed under federal estate tax law and list their tax advantages and disadvantages.
4. State the value a decedent’s assets using permitted elections, recognize the use of the Form 706 to pay any estate tax due, define the tax basis of estate assets and show how common transactions affect property basis under §1014.
5. Recognize the advantages of gift planning including estate reduction noting the impact of the GST, list the steps to compute gift tax identifying the gift tax exclusion amount, and define the value of different types of gifts including split gifting for spouses.
6. Identify the various gift tax exclusions, state the treatment of below-market loans, list the gift tax marital deduction requirements, list the tax consequences of giving various assets naming five factors to consider when gifting, and identify the use of the Form 709 to compute and pay federal gift tax.
After studying the materials in Chapter 2, answer the exam questions 7 to 26.
Chapter 3 Wills & Probate
At the start of Chapter 3, participants should identify the following topics for study:
* Provisions of wills
* Requirements of wills
* Executors and guardians
* Types of wills
* Title implications
* Changes to a will
* Advantages of a will
* Simple will
* Probate pros and cons
* Probate avoidance
After reading Chapter 3, participants will be able to:
1. Define four types of wills listing at least five functions a will can perform, identify at least four types of bequests, compare the duties of executors and guardians, and name four ways to hold title describing their tax ramifications.
2. List several advantages of a properly drafted will, outline the distribution flow of simple wills, and state the pros and cons of probate proceedings.
After studying the materials in Chapter 3, answer the exam questions 27 to 32.
Chapter 4 Trusts
At the start of Chapter 4, participants should identify the following topics for study:
* Purpose of trusts
* Common elements of trusts
* Types of trusts
* Living trusts
* Income tax & trusts
* Gift tax & trusts
* Estate tax & trusts
* Identification, recital & property transfer clauses
* Income and principal & revocation and amendment clauses
* Trustee & trust termination clauses
After reading Chapter 4, participants will be able to:
1. Recognize the four party relationship of a trust, name at least eight reasons to establish a trust, and list eight types of trusts stating their estate planning function.
2. List seven recommended living trust provisions identify the application of gift and income tax including the use of a grantor trust and an unlimited marital deduction, and define “A-B” and “A-B-C” trust formats.
After studying the materials in Chapter 4, answer the exam questions 33 to 42.
Chapter 5 Post-Mortem Planning & Tax Return Requirements
At the start of Chapter 5, participants should identify the following topics for study:
* After death planning
* Federal returns
* Decedent’s estate tax
* Preparation of the Form 706
* Estate income tax return
* Filing requirements of decedent’s final income tax return
* Included income
* Exemptions & deductions
* Filing the gift tax return
* Special applications & traps of the gift tax return
After reading Chapter 5, participants will be able to:
1. Recognize post-mortem estate planning in the face of funeral and administrative expenses by using elections and disclaimers.
2. Identify the due dates of three federal forms, list the filing requirements of the decedent’s estate tax form, and name three exceptions to the general rule of estate tax payment.
3. State the processes and procedures necessary to the preparation and timely filing of the Form 706.
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