Visual Estate Planning - 16 CPE Credit Hours
Throw away the tax Code and regulations and make sense of estate planning. Learn how to structure an effective estate plan using a highly visual, real-life situation approach. Diagrams, charts, tables, and calculation sheets are used to present key elements of any successful estate plan - from the simplest to the most complex.
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 the three basic elements of estate planning exposing clients to the wide spectrum of estate planning, identify the importance of well-drafted legal documents and name the key team participants describing their roles in estate planning process.
2. Outline the probate process by guiding clients through an average probate.
3. Identify three estate tax-planning elements that remain relatively unaffected by recent legislation and recognize how each could benefit the taxpayer’s estate planning.
4. List five basic estate-planning goals in designing an effective plan naming three primary plans that allow disposition outside of probate and define trusts in at least one of two ways.
5. State the mechanics of a living “A-B” and “A-B-C” (QTIP) trust showing their ability to reduce death taxes 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 21.
Chapter 2 Estate & Gift Taxes
At the start of Chapter 2, participants should identify the following topics for study:
* Federal estate tax
* Taxable gross estate
* Deductions from gross estate
* Estate tax return & payment
* Tax basis for estate assets
* Generation-skipping transfer tax
* Gift taxes
* Annual exclusion
* 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 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 show the use of the Form 709 to compute and pay federal gift tax.
After studying the materials in Chapter 2, answer the exam questions 22 to 59.
Chapter 3 Plans, Devices & Techniques
At the start of Chapter 3, participants should identify the following topics for study:
* Disposition of property without a will
* Disposition of property with a will
* Joint tenancies & tenancies in common
* Retirement plans & IRAs & life insurance
* Gifts & payable on death accounts
* Transfers using a trust
* Annual gift tax exclusion & unlimited marital deduction
* Annuities & trusts
* Grantor retained income trusts
* Buy-sell agreements
After reading Chapter 3, participants will be able to:
1. List the distinctions between the process of property disposition within probate under a will and intestate succession and state the resulting impact on an estate and its beneficiaries.
2. Identify at least seven ways to make transfers outside the probate system including the use of a trust.
3. Define special exclusions, deductions, and transfers to be used as estate-planning tools permitting clients to pass more wealth to heirs and save death taxes while retaining maximum control where possible.
4. Recognize how specialized trusts, valuations, and entities can reduce estate taxes, show the advantages of the annual gift tax exclusion and how it can provide a tax deduction or offer income, estate and gift tax savings.
5. Recognize a grantor retained income trust as an estate-planning device listing the variations of this trust and stating their benefits to the grantor and beneficiaries.
After studying the materials in Chapter 3, answer the exam questions 60 to 80.
This course and test have been adapted from materials and information contained in the above text and any supplemental material provided. This course is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice and assumes no liability whatsoever in connection with its use. Since laws are constantly changing, and are subject to differing interpretations, we urge you to do additional research and consult appropriate experts before relying on the information contained in this course to render professional advice.