BUSI 352 quiz 6 Estate and Special Circumstances Planning solutions complete answers

BUSI 352 quiz 6 Estate and Special Circumstances Planning solutions complete answers 

 

John, age 58, has been using a CFP® practitioner for the last 15 years. The CFP® practitioner recently retired and, as a result, John has decided to engage Tom, who is also a CFP® practitioner, but unaffiliated with John’s original practitioner. After analyzing and evaluating John’s current financial position, Tom made his recommendations. Those recommendations differed from that of John’s original practitioner. According to the Practice Standards, how should the differing recommendations be handled?

 

Which of the following is not a principle in the CFP Board’s Code of Ethics?

 

Families with children with special needs have more complicated lives than traditional families. Which of the following is correct?

 

A parent of a 10-year-old child with special needs should consider all of the following financial planning techniques, EXCEPT:

 

Today, Rick is submitting his Initial Application for CFP® certification with the CFP Board of Standards. Four years earlier, Rick signed a Letter of Acceptance, Waiver and Consent with FINRA, as part of FINRA arbitration hearing. As part of the arbitration settlement, Rick consented to a 30-day suspension, a fine of $100,000 and 20 hours of continuing education. Which action is most appropriate for Rick to take when completing his Initial Application for CFP® certification?

 

Charlie is a CFP® professional and is engaged in the financial planning process with his client William. Charlie is in the data gathering process and has collected bank statements, insurance policies, estate documents, and all other relevant information except for tax returns. William refuses to supply the tax returns or any documents that support his income claims. Charlie’s best course of action is to?

 

For many years, Samuel has been employed as a financial advisor at a leading brokerage firm where he conducts suitability reviews and makes investment recommendations for his clients. He recently obtained his CFP® certification and has just signed an agreement with Thomas, a new client, for a comprehensive financial plan. According to the Code and Standards, which of the following represent an additional requirement for Samuel in his engagement with Thomas compared with his other clients, to whom he provides financial advice but not financial planning?

 

Annie and Sam were married for 20 years when Annie met and fell madly in love with Armando.  Annie is currently in the process of divorcing Sam so that she can quickly marry her new love. Which of the following is not proper advice for Annie?

 

Which of the following is the best recommendation for a 40-year-old single mom who has two young children and who is terminally ill?

 

Which of the following is not among the recommended actions for divorcing clients?

 

Under the candidate fitness standards, the following conduct is unacceptable and will always bar an individual from becoming certified:

 

When providing financial advice to a client, CFP® professionals must disclose all of the following information EXCEPT:

 

Which of the following is/are true regarding suspension? ONE: The Commission may order a suspension of a CFP® professional for up to ten years. TWO: It is standard procedure to publish suspensions with identification of the certificant in press releases or other forms of publicity.

 

You are at a birthday party having a conversation with an individual you have NOT spoken with previously. The individual is excited, just having heard that a new mutual fund is positioned to deliver large gains in the coming year. The individual asks you about emerging market funds, and you provide some general information about them. According to the Code and Standards, which of the following is correct?

 

Which of the following duties to the client under Code and Standards Section A ensures that information is accessible only to those authorized to have access.

 

Which of the following is/are financial planning recommendations for individuals diagnosed with a terminal illness? ONE: Prepare or update estate documents such as the will, power of attorney, and advance medical directive. TWO: Review funeral and burial arrangements. THREE: Inform the executor of accounts, account access, online accounts and passwords, in accordance with the state's Fiduciary Access to Digital Accounts law.

 

Trusts can be very beneficial in many financial planning situations. Many trust benefits, such as asset protection and control, are appropriate considerations for a family with a person with special needs. Which of the following types of trusts would generally be used to protect a judgement from a lawsuit, on behalf of a child with special needs?

 

Meg and Hank have a son, Roy, who is severely disabled and will need assistance with custodial care for the remainder of his life. They own a successful business and would like to set aside $1,000,000 to provide for his quality of life needs without causing the loss of any government benefits to which Roy is entitled. Which of the following is the most appropriate recommendation for meeting their needs?

 

Which of the following is NOT an acceptable form of compensation for a CFP® professional?

 

Which of the following is not a special planning needs situation?

 

Which of the following statements regarding Achieving a Better Life Experience (ABLE) accounts is correct?

 

Which of the following activities is most likely to be considered financial planning by the CFP Board?

 

A parent of a 10-year-old child with special needs should consider all of the following financial planning techniques, EXCEPT :

 

Which of the following is correct regarding planning for non-traditional families?

 

Which of the following statements regarding planning for a job loss or job change is NOT correct?

 

 

 

All of the following statements are true EXCEPT:                   

For all client engagements, CFP licensees must disclose all of the following information EXCEPT:                  

Which of the following activities is most likely be considered financial planning by the CFP Board?               

Which of the following is/are forms of discipline from the CFP Board?

 

1. Private Censure.

 

2. 1st Strike.

 

3. Suspension.

 

4. Monetary Penalties.            

Which of the following is not a principle in the CFP Board's Code of Ethics?              

Which of the following principles from the Code of Ethics ensures that information is accessible only to those authorized to have access.                

You are a CFP® designee who has been approached by the general partner of Beverage King Industries (BKI) to provide financial planning services to the top executives at BKI. Your brother has a ten percent limited partnership interest in BKI. Can you accept this engagement?                 

 

 

According to Practice Standard 200-1 Determining a Client's Personal and Financial Goals, Needs and Priorities, which of the following are necessary inputs to determine a client's goals?

 

1. Client's attitude.

2. Client's values.

3. Client's current income.

4. Client's expectations.          

Bob, a CFP professional, has developed a comprehensive financial plan for his client, Sue. Based on the CFP Board Practice Standards which of the following should Bob do next?          

Bob is a CFP professional. He recently met with a new client, Jack, that requests a needs analysis concerning Jack's life insurance situation. Jack is 42 years old, married, and has 2 children he plans to send to college. He wants Bob to evaluate how much and what type of insurance he should purchase. Which of the following is required to be provided to Jack according to the Code of Ethics?                

The CFP Board is a certification and standard-setting organization that:                   

The Commission may make one of the following decisions regarding a petition for reconsideration by a candidate for certification:          

John is a client and seems to be suffering from dementia and wants to remove his children from his will and give all of his wealth to Marie, a neighbor who periodically visits John and delivers him groceries. What should the CFP professional do?                   

A number of years ago Ron was divorced and subsequently had severe financial issues. Two years ago, he filed for bankruptcy. After getting back on his feet financially, he decided to become a CFP professional. Today, he made his application to CFP Board for certification. Which of the following is correct under the Board's policy regarding bankruptcy?              

Sara is a CFP professional with her own financial planning practice. Barry was referred to Sara, as Barry was looking to purchase a disability insurance policy. Sara gathers data from Barry to complete an application to submit to the insurance underwriter. Sara also explains, in detail, the tax implications of purchasing a private disability insurance policy. What duty of care does Sara owe Barry, according to the CFP Board of Standard's Code of Ethics?                 

Sydney is a CFP professional and recently met with a prospective client, Karen. Karen is the owner of a chain of retail hardware stores throughout the southeast. Karen was referred to Sydney through a mutual friend. Karen is considering rolling out a new 401(k) plan to her employees and has asked Sydney to review her current plan and make a recommendation on improving the plan. Which of the following is required to be provided to Karen according to the Code of Ethics?          

Under the CFP Board's Rules of Conduct, violations of the Rules of Conduct may subject a certificant or Professionals Eligible for Reinstatement to discipline. Which of the following is true with respect to any such violations?

 

1. Discipline extends to the rights of Professionals Eligible for Reinstatement and certificants to use the CFP marks.

2. The rules are designed to be a basis for legal liability to any third party.

3. The CFP Board has the exclusive right to ensure that certificants and Professionals Eligible for Reinstatement meet and continue to meet the CFP Board's initial and ongoing certification requirements.            

Under the CFP Board's Rules of Conduct, which of the following are a category of rules within the CFP Board's Rules of Conduct?              

What is the client's responsibility during the financial planning process?                  

What must be included, in writing, in any engagement letter that involves financial planning?           

Which of the following are true with respect to the Practice Standards?

1. Each Practice Standard is a statement regarding one of the steps in the financial planning process or investments planning process.

2. Includes monitoring responsibilities after a financial plan is implemented.

3. The scope of the engagement does not have to be in writing.                  

Which of the following best describes the intent behind the principles of the CFP Board's Code of Ethics?                

Which of the following definitions best defines a fiduciary under the CFP Board's Standards of Professional Conduct?                   

Which of the following is not a principle in the Code of Ethics?          

Which of the following is not specifically addressed in the CFP Board's Standards of Professional Conduct?               

          William, a CFP professional, has been working with his new client Cole. He has completed all required disclosures and provided all written documents required for a financial planning engagement. Cole is 42, divorced, and has one child. William discussed Cole's insurance coverage following a thorough review of Cole's policies and recommended Cole purchase a disability policy and additional term life insurance through his employer. William also performed a retirement needs analysis and developed an investment plan he believes will help Cole achieve his goals. While presenting the retirement and investment plan, Cole mentioned that he was rejected for the life insurance for medical reasons that he does not wish to discuss with William.           

 

 

Approximately how any families are raising one or more children with a disability?

a. More than 2.5 million

b. Between 1.5 million and 2.5 million

c. Between 0.75 million and 1.5 million

d. Below 0.75 million             

 

Beth and Scott have been married for 15 years but are now getting divorced. They were married young and have one child, who is age 9. This is a very emotional time for both of them. If you were their advisor, which of the following would you recommend?

a. Be sure to obtain individual credit

b. Make sure that you establish the tax basis of assets that are separated

c. Be certain to change beneficiary designations on retirement plans

d. All of the above are good recommendations          

 

Families with special needs children have more complicated lives than traditional families. Which of the following is correct?

a. A parent or guardian should not attempt to help the child accumulate assets in the child's name to be sure the child can be cared for

b. A parent or guardian should not attempt to provide health insurance for the child

c. A parent or guardian should not worry about preserving governmental benefits for the child

d. A trust can be established for a special needs child that provides for many benefits, including providing for food and shelter for the child, without impacting governmental benefits               

 

Today, there are many non-traditional households. Which of the following statements are correct?

1. The non-traditional family may take many different forms.

2. DOMA defines what a marriage is for federal law, which may impact benefits and restrictions under the Internal Revenue Code.

3. There are very few differences that have to be dealt with in a non-traditional household.

a. Statement 1 only

b. Statement 2 only

c. Statements 2 and 3

d. Statements 1, 2, and 3                  

 

Trusts can be very beneficial in many financial planning situations. Many trust benefits, such as asset protection and control, are appropriate considerations for a family with a special needs person. Which of the following is true?

 

a. Federal benefits will likely be lost if parents fund a family trust with cash

b. A special needs trust under 42 U.S.C. Sec. 1396p(d)(4)(A) will permit a family member to contribute to the trust for the benefit of the special needs child without adversely effecting government benefits if funds are paid back to the State to the extent of the benefit at the death of the child

c. The funds remaining in a pooled trust can be left to a family member or a charity

d. A qualified trust under IRC section 401(a) is often used to provide benefits to a family with a special needs situation                   

 

Trusts can be very beneficial in many financial planning situations. Many trust benefits, such as asset protection and control, are appropriate considerations for a family with a special needs person. Which of the following trusts would generally be used by a parent or grandparent to provide for needs, such as medical treatments, education or travel for a special needs child?

a. Family trust or third party trust

b. A trust under 42 U.S.C. Sec. 1396p(d)(4)(A)

c. A pooled trust

d. A medical trust                 

 

Which of the following is not an example of a special needs situation?

a. Planning for Cindy, who has a daughter who has Down syndrome

b. Planning for the Charles family with three boys ages 2, 3 and 4

c. Planning for Jordan and Payton, who live together but are not married

d. Planning for the Couch family, who just inherited $12 million