Module 1
What is an engagement agreement?
An agreement between you and your client the clearly lays out the work you are to perform for the client.
What is the highest tax rate for the federal gift tax?
40%
What is the most common type of trust?
Revocable Living Trust
What is probate?
Court process that oversees the transfer of assets from a decedent to a beneficiary
What is Brock's favorite high school basketball team?
Quaker Valley
A property owned as Tenants by the Entireties is owned by whom?
Spouses
What is the annual exclusion amount and lifetime exemption amount for the federal gift tax?
$19,000 and $15 million
Their are two "actors" of a trust, who are they?
Grantor/settlor and Trustee
Difference between an executor and an administrator?
Executor - Will
Administrator - No Will (intestate)
Brock is licensed to judge what type of animal?
Rabbits
Name a reason you might recommend life insurance to a client for estate planning purposes.
-Liquidity
-Pay off debts
-Avoid probate with a beneficiary designation
-Make up for an inheritance or lack thereof
What happens to the basis for property that is gifted from a donor to a donee?
When is a testamentary trust created?
After death by a decedent's will.
What is the only requirement for a Will in PA?
Signed at the end by the testator.
Brock's office is located in what town?
Sewickley
Name Two Steps of the Estate Planning Process.
-Understand the client
-ID and select goals
-Analyze the Client’s Current and Potential Alternative Courses of action
-Develop recommendations
-Present the recommendations
-Implement the recommendations
-Monitor progress and update
When is a gift complete?
What's the difference between a charitable lead trust and a charitable remainder trust?
Lead- charity has interest to income immediately for a certain amount of time.
Remainder- charity has an interest in the remaining principal after the death of the grantor or a certain amount of time.
What is the spousal elective share?
Allows a spouse to claim a certain amount of the deceased spouse's probate property.
What row are Brock's basketball season tickets for RMU games?
1st Row
In terms of a STEP UP IN BASIS for property owned by spouses, what is the difference between community property states and common law property states?
-Community Property: When one spouse passes, the property as a whole receives a step up in basis.
-Common Law: Only 1/2 of the property receives a step up in basis.
Take the average of the high and low the day of the transfer.
What would a sprinkle provision in a trust allow the trustee to do?
Trustee granted the power to direct trust distributions to whomever the trustee deems appropriate - i.e. "sprinkle" them
Difference between per capita and per stirpes?
Per stirpes - by the root, deceased child's share goes to their children equally.
Per capita - deceased child's children receive same share has living children. Everyone receives same share.
Brock has billboards for his law office, what funny saying is on the billboards?
Yinz guys need a will!