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24 Cards in this Set
- Front
- Back
Marital Property Regime
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Systems of property ownership between spouses providing for the creation or absence of a marital estate, and if created, what properties are included in the estate, how it is managed, and how it will be divided at end of the marriage
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Declaration of Separateness
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Prevents interests, dividends, rents and royalties that flow from separate property after a marriage from becoming community property
Need not be signed by other spouse, but they must receive notice |
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Probate Property
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Property subject to a will; if no will exists, it passes via state intestacy laws
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Usufruct
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Right of enjoyment, enabling a holder to derive profit or benefit from property that either is titled to another person or which is held in common ownership, as long as the property is not damaged or destroyed
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Forced Heirship
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Any child under 23 years of age
Any age are permanently incapable of handling estate -25% of estate if one force heir -50% of estate if more than one Each forced heir receives the lesser of an equal proportion of the legitime or what they would have received through intestacy |
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LA Methods of Disinheritance
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(1) Hand raised to strike or actually strike parent (not just a threat)
(2) Cause grievous injury to parent; cruel treatment (3) Attempt to kill parent (4) Wrongfully accusing parent of committing crime which can result in life imprisonment or death (5) Used act of violence of coercion to prevent in making a will (6) Minor child married without consent (7) Child convicted of a crime that can result in life imprisonment or death (8) Child refuses to speak to parent for a period of at least 2 years |
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Principles of Ethics
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(1) Integrity
(2) Objectivity (3) Fairness (4) Competence (5) Diligence (6) Confidentiality |
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Other Principles of Ethics
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(1) Mentoring
(2) Communicating (3) Courtesy |
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CFP Ethics Complaint Process
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(1) Request for Investigation/Determine if Case
(2) Written Notice Sent; 30 days to respond (3) Second Notice Sent; 20 days to respond (4) Formal Complaint Filed; 20 days to respond ----If no response, allegations are deemed true; revocation of CFP marks (6) Hearing Panel ----3 member board; at least 2 CFPs (7) Commission Decides (8) Appeals |
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CFP Ethics Punishments
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(1) Private Written Censure
(2) Public Admonition (3) Suspension of CFP License up to 5 years (4) Permanent Revocation of License |
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Step Up Provision
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Determine cost basis of an inherited asset at the death of the grantor; no capital gains due to asset appreciation if sold immediately upon inheritance
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Property of a Trust Terms
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Res, Corpus, Principal
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Trust Term Components
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(1) Investment Standards (Prudent Man Default Rule)
(2) Disposition Rules (3) Spendthrift Provision |
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Inter Vivos
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Lifetime living trust
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Advantages/Disadvantages of Living Trusts
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Private, effectively becomes a will; changeable; avoids probate
Assets must be transferred to trust; may have annual expense |
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Time within which a divorce must occur for a settlement to not be a gift
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3 years
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Annual gift tax exclusion; Lifetime Exemption
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$14,000
$5.25 miilion |
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Constructive Dividend
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Undeclared dividend by a company that involves the use of corporate assets
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3 Requirements for Qualified Disclaimer
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(1) Must be in writing
(2) 9 months after right of the property became yours (3) Can't control disposition of gift |
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Personal Liability of Debt and Gifts
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If personally liable, the gift is the full amount
If NOT personally liable, the gift is only the equity amount |
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Gift of Paid Up Insurance
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Single premium of replacement policy cost
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Gift of Annual Premium Policy
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Terminal Reserve + Unearned Premiums (for the last payment)
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Gift of Immediately (within one year) Transfer of Insurance Policy
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Premiums paid to insurer
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Gift of Term Insurance
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Unused Premium
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