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24 Cards in this Set

  • Front
  • Back
Marital Property Regime
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
Declaration of Separateness
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
Probate Property
Property subject to a will; if no will exists, it passes via state intestacy laws
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
Forced Heirship
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
LA Methods of Disinheritance
(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
Principles of Ethics
(1) Integrity
(2) Objectivity
(3) Fairness
(4) Competence
(5) Diligence
(6) Confidentiality
Other Principles of Ethics
(1) Mentoring
(2) Communicating
(3) Courtesy
CFP Ethics Complaint Process
(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
CFP Ethics Punishments
(1) Private Written Censure
(2) Public Admonition
(3) Suspension of CFP License up to 5 years
(4) Permanent Revocation of License
Step Up Provision
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
Property of a Trust Terms
Res, Corpus, Principal
Trust Term Components
(1) Investment Standards (Prudent Man Default Rule)
(2) Disposition Rules
(3) Spendthrift Provision
Inter Vivos
Lifetime living trust
Advantages/Disadvantages of Living Trusts
Private, effectively becomes a will; changeable; avoids probate

Assets must be transferred to trust; may have annual expense
Time within which a divorce must occur for a settlement to not be a gift
3 years
Annual gift tax exclusion; Lifetime Exemption
$5.25 miilion
Constructive Dividend
Undeclared dividend by a company that involves the use of corporate assets
3 Requirements for Qualified Disclaimer
(1) Must be in writing
(2) 9 months after right of the property became yours
(3) Can't control disposition of gift
Personal Liability of Debt and Gifts
If personally liable, the gift is the full amount

If NOT personally liable, the gift is only the equity amount
Gift of Paid Up Insurance
Single premium of replacement policy cost
Gift of Annual Premium Policy
Terminal Reserve + Unearned Premiums (for the last payment)
Gift of Immediately (within one year) Transfer of Insurance Policy
Premiums paid to insurer
Gift of Term Insurance
Unused Premium