Thursday, May 5, 2011

CFP (Certified Financial Planner)

*konvensional, internasional

training perencanaan keuangan syariah:

- Dunia kerja dalam bidang perencana keuangan dan proses perencanaan
- Laporan keuangan personal
- Nilai waktu uang
- Prinsip-prinsip investasi
- Instrumen utang
- Modal dan investasi lainnya
- Unit Trusts
- Manajemen Risiko – Asuransi Jiwa dan Kesehatan
- Manajemen Risiko – Asuransi Umum
- Perencanaan pajak penghasilan
- Perencanaan Pensiun
- Perencanaan Properti
- Ujian

- Konsep dasar investasi
- Pengantar Pasar Modal Indonesia
- Analisis Laporan Keuangan
- Alokasi Aset dan diversifikasi portofolio
- Analisis Modal
- Sekuritas Pendapatan tetap
- Pengantar Instrumen derivatif
- Unit Trusts
- Ujian

- Pengantar industri asuransi di Indonesia
- Konsep manajemen resiko
- Dasar-dasar asuransi umum
- Perencanaan keuangan personal dan asuransi jiwa
- Asuransi jiwa tradisional, Unit Linked, dan Syariah
- Perawatan jangka panjang, cacat, dan anuitas
- Asuransi kesehatan, medis, dan kelompok
- Proses seleksi dan klasifikasi risiko
- Asuransi umum personal

- Pengantar perencanaan pensiun
- Kebutuhan proteksi – Asuransi Jiwa dan Kesehatan
- Program dan konsep anuitas
- Program pension yang disediakan perusahaan
- Program pension yang disediakan pemerintah
- Pengantar perencanaan pajak penghasilan
- SPT Tahunan Pajak Penghasilan WP Orang Pribadi
- Pengantar perencanaan properti
- Proses perencanaan properti
- Distribusi kesejahteraan
- Hukum pernikahan dan keluarga
- Pajak atas properti
- Perencanaan Asuransi Jiwa dan distribusi kesejahteraan
- Perencanaan keberlangsungan usaha dan distribusi kesejahteraan
- Studi kasus
- Ujian

This topic list, based on the 2004 Job Analysis Study, is for CFP® Certification Examinations administered November 2006 and later


1. Financial planning process
A. Purpose, benefits, and components
B. Steps
1) Establishing client-planner relationships
2) Gathering client data and determining goals and expectations
3) Determining the client's financial status by analyzing and evaluating general financial status, special needs, insurance and risk management, investments, taxation, employee benefits, retirement, and/or estate planning
4) Developing and presenting the financial plan
5) Implementing the financial plan
6) Monitoring the financial plan
C. Responsibilities
1) Financial planner
2) Client
3) Other advisors

2. CFP Board's Code of Ethics and Professional Responsibility and Disciplinary Rules and Procedures
A. Code of Ethics and Professional Responsibility
1) Preamble and applicability
2) Composition and scope
3) Compliance
4) Terminology
5) Principles
a) Principle 1 - Integrity
b) Principle 2 - Objectivity
c) Principle 3 - Competence
d) Principle 4 - Fairness
e) Principle 5 - Confidentiality
f) Principle 6 - Professionalism
g) Principle 7 - Diligence
6) Rules
B) Disciplinary Rules and Procedures

3. CFP Board's Financial Planning Practice Standards
A. Purpose and applicability
B. Content of each series (use most current Practice Standards, as posted on CFP Board's Web site at
C. Enforcement through Disciplinary Rules and Procedures

4. Financial statements
A. Personal
1) Statement of financial position
2) Statement of cash flow
B. Business
1) Balance sheet
2) Income statement
3) Statement of cash flows
4) Pro forma statements

5. Cash flow management
A. Budgeting
B. Emergency fund planning
C. Debt management ratios
1) Consumer debt
2) Housing costs
3) Total debt
D. Savings strategies

6. Financing strategies
A. Long-term vs. short-term debt
B. Secured vs. unsecured debt
C. Buy vs. lease/rent
D. Mortgage financing
1) Conventional vs. adjustablerate mortgage (ARM)
2) Home equity loan and line of credit
3) Refinancing cost-benefit analysis
4) Reverse mortgage

7. Function, purpose, and regulation of financial institutions
A. Banks
B. Credit unions
C. Brokerage companies
D. Insurance companies
E. Mutual fund companies
F. Trust companies

8. Education planning
A. Funding
1) Needs analysis
2) Tax credits/adjustments/deductions
3) Funding strategies
4) Ownership of assets
5) Vehicles
a) Qualified tuition programs (§529 plans)
b) Coverdell Education Savings Accounts
c) Uniform Transfers to Minors Act (UTMA) and Uniform Gifts to Minors Act (UGMA) accounts
d) Savings bonds
B. Financial aid

9. Financial planning for special circumstances
A. Divorce
B. Disability
C. Terminal illness
D. Non-traditional families
E. Job change and job loss
F. Dependents with special needs
G. Monetary windfalls

10. Economic concepts
A. Supply and demand
B. Fiscal policy
C. Monetary policy
D. Economic indicators
E. Business cycles
F. Inflation, deflation, and stagflation
G. Yield curve

11. Time value of money concepts and calculations
A. Present value
B. Future value
C. Ordinary annuity and annuity due
D. Net present value (NPV)
E. Internal rate of return (IRR)
F. Uneven cash flows
G. Serial payments

12. Financial services regulations and
A. Registration and licensing
B. Reporting
C. Compliance
D. State securities and insurance laws

13. Business law
A. Contracts
B. Agency
C. Fiduciary liability

14. Consumer protection laws
A. Bankruptcy
B. Fair credit reporting laws
C. Privacy policies
D. Identity theft protection


15. Principles of risk and insurance
A. Definitions
B. Concepts
1) Peril
2) Hazard
3) Law of large numbers
4) Adverse selection
5) Insurable risks
6) Self-insurance
C. Risk management process
D. Response to risk
1) Risk control
a) Risk avoidance
b) Risk diversification
c) Risk reduction
2) Risk financing
a) Risk retention
b) Risk transfer
E. Legal aspects of insurance
1) Principle of indemnity
2) Insurable interest
3) Contract requirements
4) Contract characteristics
5) Policy ownership
6) Designation of beneficiary

16. Analysis and evaluation of risk exposures
A. Personal
1) Death
2) Disability
3) Poor health
4) Unemployment
5) Superannuation
B. Property
1) Real
2) Personal
3) Auto
C. Liability
1) Negligence
2) Intentional torts
3) Strict liability
D. Business-related

17. Property, casualty and liability insurance
A. Individual
1) Homeowners insurance
2) Auto insurance
3) Umbrella liability insurance
B. Business
1) Commercial property insurance
2) Commercial liability insurance
a) Auto liability
b) Umbrella liability
c) Professional liability
d) Directors and officers liability
e) Workers' compensation and employers liability

18. Health insurance and health care cost management (individual)
A. Hospital, surgical, and physicians' expense insurance
B. Major medical insurance and
calculation of benefits
C. Continuance and portability
D. Medicare
E. Taxation of premiums and benefits

19. Disability income insurance (individual)
A. Definitions of disability
B. Benefit period
C. Elimination period
D. Benefit amount
E. Provisions
F. Taxation of premiums and benefits

20. Long-term care insurance (individual)
A. Eligibility
B. Services covered
C. Medicare limitations
D. Benefit period
E. Elimination period
F. Benefit amount
G. Provisions
H. Taxation of premiums and benefits

21. Life insurance (individual)
A. Concepts and personal uses
B. Policy types
C. Contractual provisions
D. Dividend options
E. Nonforfeiture options
F. Settlement options
G. llustrations
H. Policy replacement
I. Viatical and life settlements

22. Income taxation of life insurance
A. Dividends
B. Withdrawals and loans
C. Death benefits
D. Modified endowment contracts (MECs)
E. Transfer-for-value
F. §1035 exchanges

23. Business uses of insurance
A. Buy-sell agreements
B. Key employee life insurance
C. Split-dollar life insurance
D. Business overhead expense insurance

24. Insurance needs analysis
A. Life insurance
B. Disability income insurance
C. Long-term care insurance
D. Health insurance
E. Property insurance
F. Liability insurance

25. Insurance policy and company selection
A. Purpose of coverage
B. Duration of coverage
C. Participating or non-participating
D. Cost-benefit analysis
E. Company selection
1) Industry ratings
2) Underwriting

26. Annuities
A. Types
B. Uses
C. Taxation


27. Group life insurance
A. Types and basic provisions
1) Group term
2) Group permanent
3) Dependent coverage
B. Income tax implications
C. Employee benefit analysis and
D. Conversion analysis

28. Group disability insurance
A. Types and basic provisions
1) Short-term coverage
2) Long-term coverage
B. Definitions of disability
C. Income tax implications
D. Employee benefit analysis and
E. Integration with other income

29. Group medical insurance
A. Types and basic provisions
1) Traditional indemnity
2) Managed care plans
a) Preferred provider organization (PPO)
b) Health maintenance organization (HMO)
c) Point-of-service (POS)
B. Income tax implications
C. Employee benefit analysis and application
D. COBRA/HIPAA provisions
E. Continuation
F. Savings accounts
1) Health savings account (HSA)
2) Archer medical savings account (MSA)
3) Health reimbursement arrangement (HRA)

30. Other employee benefits
A. §125 cafeteria plans and flexible spending accounts (FSAs)
B. Fringe benefits
C. Voluntary employees' beneficiary association (VEBA)
D. Prepaid legal services
E. Group long-term care insurance
F. Dental insurance
G. Vision insurance

31. Employee stock options
A. Basic provisions
1) Company restrictions
2) Transferability
3) Exercise price
4) Vesting
5) Expiration
6) Cashless exercise
B. Incentive stock options (ISOs)
1) Income tax implications (regular, AMT, basis)
a) Upon grant
b) Upon exercise
c) Upon sale
2) Holding period requirements
3) Disqualifying dispositions
4) Planning opportunities and strategies
C. Non-qualified stock options (NSOs)
1) Income tax implications (regular, AMT, basis)
a) Upon grant
b) Upon exercise
c) Upon sale
2) Gifting opportunities
a) Unvested/vested
b) Exercised/unexercised
c) Gift tax valuation
d) Payment of gift tax
3) Planning opportunities and strategies
4) Employee benefits analysis and application
D. Planning strategies for employees with both incentive stock options and non-qualified stock options
E. Election to include in gross income in the year of transfer (§83(b) election)

32. Stock plans
A. Types and basic provisions
1) Restricted stock
2) Phantom stock
3) Stock appreciation rights(SARs)
4) Employee stock purchase plan (ESPP)
B. Income tax implications
C. Employee benefit analysis and application
D. Election to include in gross income in the year of transfer (§83(b) election)

33. Non-qualified deferred compensation
A. Basic provisions and differences from qualified plans
B. Types of plans and applications
1) Salary reduction plans
2) Salary continuation plans
3) Rabbi trusts
4) Secular trusts
C. Income tax implications
1) Constructive receipt
2) Substantial risk of forfeiture
3) Economic benefit doctrine
D. Funding methods
E. Strategies


34. Characteristics, uses and taxation of investment vehicles
A. Cash and equivalents
1) Certificates of deposit
2) Money market funds
3) Treasury bills
4) Commercial paper
5) Banker's acceptances
6) Eurodollars
B. Individual bonds
1) U.S. Government bonds and agency securities
a) Treasury notes and bonds
b) Treasury STRIPS
c) Treasury inflation-protection securities (TIPS)
d) Series EE, HH, and I bonds
e) Mortgage-backed securities
2) Zero-coupon bonds
3) Municipal bonds
a) General obligation
b) Revenue
4) Corporate bonds
a) Mortgage bond
b) Debenture
c) Investment grade
d) High-yield
e) Convertible
f) Callable
5) Foreign bonds
C. Promissory notes
D. Individual stocks
1) Common
2) Preferred
3) American depositary receipts (ADRs)
E. Pooled and managed investments
1) Exchange-traded funds (ETFs)
2) Unit investment trusts
3) Mutual funds
4) Closed-end investment companies
5) Index securities
6) Hedge funds
7) Limited partnerships
8) Privately managed accounts
9) Separately managed accounts
F. Guaranteed investmentcontracts (GICs)
G. Real Estate
1) Investor-managed
2) Real estate investment trusts (REITs)
3) Real estate limited partnerships (RELPs)
4) Real estate mortgage investment conduits (REMICs)
H. Alternative investments
1) Derivatives
a) Puts
b) Calls
c) Long-term Equity AnticiPation Securities (LEAPS®)
d) Futures
e) Warrants and rights
2) Tangible assets
a) Collectibles
b) Natural resources
c) Precious metals

35. Types of investment risk
A. Systematic/market/nondiversifiable
B. Purchasing power
C. Interest rate
D. Unsystematic/nonmarket/diversifiable
E. Business
F. Financial
G. Liquidity and marketability
H. Reinvestment
I. Political (sovereign)
J. Exchange rate
K. Tax
L. Investment manager

36. Quantitative investment concepts
A. Distribution of returns
1) Normal distribution
2) Lognormal distribution
3) Skewness
4) Kurtosis

B. Correlation coefficient
C. Coefficient of determination (R2)
D. Coefficient of variation
E. Standard deviation
F. Beta
G. Covariance
H. Semivariance

37. Measures of investment returns
A. Simple vs. compound return
B. Geometric average vs. arithmeticaverage return
C. Time-weighted vs. dollar-weighted return
D. Real (inflation-adjusted) vs. nominal return
E. Total return
F. Risk-adjusted return
G. Holding period return
H. Internal rate of return (IRR)
I. Yield-to-maturity
J. Yield-to-call
K. Current yield
L. Taxable equivalent yield (TEY)

38. Bond and stock valuation concepts
A. Bond duration and convexity
B. Capitalized earnings
C. Dividend growth models
D. Ratio analysis
1) Price/earnings
2) Price/free cash flow
3) Price/sales
4) Price/earnings ÷ growth (PEG)
E. Book value

39. Investment theory
A. Modern portfolio theory (MPT)
1) Capital market line (CML)
a) Mean-variance optimization
b) Efficient frontier
2) Security market line (SML)
B. Efficient market hypothesis (EMH)
1) Strong form
2) Semi-strong form
3) Weak form
4) Anomalies
C. Behavioral finance

40. Portfolio development and analysis
A. Fundamental analysis
1) Top-down analysis
2) Bottom-up analysis
3) Ratio analysis
a) Liquidity ratios
b) Activity ratios
c) Profitability ratios
d) Debt ratios
B. Technical analysis
1) Charting
2) Sentiment indicators
3) Flow of funds indicators
4) Market structure indicators
C. Investment policy statements
D. Appropriate benchmarks
E. Probability analysis, including Monte Carlo
F. Tax efficiency
1) Turnover
2) Timing of capital gains and losses
3) Wash sale rule
4) Qualified dividends
5) Tax-free income
G. Performance measures
1) Sharpe ratio
2) Treynor ratio
3) Jensen ratio
4) Information ratio

41. Investment strategies
A. Market timing
B. Passive investing (indexing)
C. Buy and hold
D. Portfolio immunization
E. Swaps and collars
F. Formula investing
1) Dollar cost averaging
2) Dividend reinvestment plans (DRIPs)
3) Bond ladders, bullets, and barbells
G. Use of leverage (margin)
H. Short selling
I. Hedging and option strategies

42. Asset allocation and portfolio diversification
A. Strategic asset allocation
1) Application of client lifecycle analysis
2) Client risk tolerance measurement and application
3) Asset class definition and correlation
B. Rebalancing
C. Tactical asset allocation
D. Control of volatility
E. Strategies for dealing with concentrated portfolios

43. Asset pricing models
A. Capital asset pricing model (CAPM)
B. Arbitrage pricing theory (APT)
C. Black-Scholes option valuation model
D. Binomial option pricing


44. Income tax law fundamentals
A. Types of authority
1) Primary
2) Secondary
B. Research sources

45. Tax compliance
A. Filing requirements
B. Audits
C. Penalties

46. Income tax fundamentals and calculations
A. Filing status
B. Gross income
1) Inclusions
2) Exclusions
3) Imputed income
C. Adjustments
D. Standard/Itemized deductions
1) Types
2) Limitations
E. Personal and dependency exemptions
F. Taxable income
G. Tax liability
1) Rate schedule
2) Kiddie tax
3) Self-employment tax
H. Tax credits
I. Payment of tax
1) Withholding
2) Estimated payments

47. Tax accounting
A. Accounting periods
B. Accounting methods
1) Cash receipts and disbursements
2) Accrual method
3) Hybrid method
4) Change in accounting method
C. Long-term contracts
D. Installment sales
E. Inventory valuation and flow methods
F. Net operating losses

48. Characteristics and income taxation of business entities
A. Entity types
1) Sole proprietorship
2) Partnerships
3) Limited liability company (LLC)
4) Corporations
5) Trust
6) Association
B. Taxation at entity and owner level
1) Formation
2) Flow through of income and losses
3) Special taxes
4) Distributions
5) Dissolution
6) Disposition

49. Income taxation of trusts and estates
A. General issues
1) Filing requirements
2) Deadlines
3) Choice of taxable year
4) Tax treatment of distributions to beneficiaries
5) Rate structure
B. Grantor/Nongrantor trusts
C. Simple/Complex trusts
D. Revocable/Irrevocable trusts
E. Trust income
1) Trust accounting income
2) Trust taxable income
3) Distributable net income (DNI)
F. Estate income tax

50. Basis
A. Original basis
B. Adjusted basis
C. Amortization and accretion
D. Basis of property received by gift and in nontaxable transactions
E. Basis of inherited property (community and non-community property)

51. Depreciation/cost-recovery concepts
A. Modified Accelerated Cost Recovery System (MACRS)
B. Expensing policy
C. §179 deduction
D. Amortization
E. Depletion

52. Tax consequences of like-kind exchanges
A. Reporting requirements
B. Qualifying transactions
C. Liabilities
D. Boot
E. Related party transactions

53. Tax consequences of the disposition of property
A. Capital assets (§1221)
B. Holding period
C. Sale of residence
D. Depreciation recapture
E. Related parties
F. Wash sales
G. Bargain sales
H. Section 1244 stock (small business stock election)
I. Installment sales
J. Involuntary conversions

54. Alternative minimum tax (AMT)
A. Mechanics
B. Preferences and adjustments
C. Exclusion items vs. deferral items
D. Credit:creation, usage, and limitations
E. Application to businesses and trusts
F. Planning strategies

55. Tax reduction/management techniques
A. Tax credits
B. Accelerated deductions
C. Deferral of income
D. Intra-family transfers

56. Passive activity and at-risk rules
A. Definitions
B. Computations
C. Treatment of disallowed losses
D. Disposition of passive activities
E. Real estate exceptions

57. Tax implications of special circumstances
A. Married/widowed
1) Filing status
2) Children
3) Community and non-community property
B. Divorce
1) Alimony
2) Child support
3) Property division

58. Charitable contributions and deductions
A. Qualified entities
1) Public charities
2) Private charities
B. Deduction limitations
C. Carryover periods
D. Appreciated property
E. Non-deductible contributions
F. Appraisals
G. Substantiation requirements
H. Charitable contributions by business entities


59. Retirement needs analysis
A. Assumptions for retirement planning
1) Inflation
2) Retirement period and life expectancy
3) Lifestyle
4) Total return
B. Income sources
C. Financial needs
1) Living costs
2) Charitable and beneficiary gifting objectives
3) Medical costs, including longterm care needs analysis
4) Other (trust and foundation funding, education funding, etc.)
D. Straight-line returns vs. probability analysis
E. Pure annuity vs. capital preservation
F. Alternatives to compensate for projected cash-flow shortfalls

60. Social Security (Old Age, Survivor, and Disability Insurance, OASDI)
A. Paying into the system
B. Eligibility and benefit
1) Retirement
2) Disability
3) Survivor
4) Family limitations
C. How benefits are calculated
D. Working after retirement
E. Taxation of benefits

61. Types of retirement plans
A. Characteristics
1) Qualified plans
2) Non-qualified plans
B. Types and basic provisions of qualified plans
1) Defined contribution
a) Money purchase
b) Target benefit
c) Profit sharing
1) 401(k) plan
2) Safe harbor 401(k) plan
3) Age-based plan
4) Stock bonus plan
5) Employee stock ownership plan (ESOP)
6) New comparability plan
7) Thrift plan
2) Defined benefit
a) Traditional
b) Cash balance
c) 412(i) plan

62. Qualified plan rules and options
A. Nondiscrimination and eligibility requirements
1) Age and service requirements
2) Coverage requirements
3) Minimum participation
4) Highly compensated employee (HCE)
5) Permitted vesting schedules
6) ADP/ACP testing
7) Controlled group
B. Integration with Social Security/disparity limits
1) Defined benefit plans
2) Defined contribution plans
C. Factors affecting contributions or benefits
1) Deduction limit (§404(c))
2) Defined contribution limits
3) Defined benefit limit
4) Annual compensation limit
5) Definition of compensation
6) Multiple plans
7) Special rules for self-employed (non-corporations)
D. Top-heavy plans
1) Definition
2) Key employee
3) Vesting
4) Effects on contributions or benefits
E. Loans from qualified plans

63. Other tax-advantaged retirement plans
A. Types and basic provisions
1) Traditional IRA
2) Roth IRA, including conversion analysis
3) SEP
5) §403(b) plans
6) §457 plans
7) Keogh (HR-10) plans

64. Regulatory considerations
A. Employee Retirement Income Security Act (ERISA)
B. Department of Labor (DOL) regulations
C. Fiduciary liability issues
D. Prohibited transactions
E. Reporting requirements

65. Key factors affecting plan selection for businesses
A. Owner's personal objectives
1) Tax considerations
2) Capital needs at retirement
3) Capital needs at death
B. Business' objectives
1) Tax considerations
2) Administrative cost
3) Cash flow situation and outlook
4) Employee demographics
5) Comparison of defined contribution and defined benefit plan alternatives

66. Investment considerations for retirement plans
A. Suitability
B. Time horizon
C. Diversification
D. Fiduciary considerations
E. Unrelated business taxable income (UBTI)
F. Life insurance
G. Appropriate assets for tax-advantaged vs. taxable accounts

67. Distribution rules, alternatives,and taxation
A. Premature distributions
1) Penalties
2) Exceptions to penalties
3) Substantially equal payments (§72(t))
B. Election of distribution options
1) Lump sum distributions
2) Annuity options
3) Rollover
4) Direct transfer
C. Required minimum distributions
1) Rules
2) Calculations
3) Penalties
D. Beneficiary considerations/Stretch IRAs
E. Qualified domestic relations order (QDRO)
F. Taxation of distributions
1) Tax management techniques
2) Net unrealized appreciation (NUA)


68. Characteristics and consequences of property titling
A. Community property vs. non-community property
B. Sole ownership
C. Joint tenancy with right of survivorship (JTWROS)
D. Tenancy by the entirety
E. Tenancy in common
F. Trust ownership

69. Methods of property transfer at death
A. Transfers through the probate process
1) Testamentary distribution
2) Intestate succession
3) Advantages and disadvantages of probate
4) Assets subject to probate estate
5) Probate avoidance strategies
6) Ancillary probate administration
B. Transfers by operation of law
C. Transfers through trusts
D. Transfers by contract

70. Estate planning documents
A. Wills
1) Legal requirements
2) Types of wills
3) Modifying or revoking a will
4) Avoiding will contests
B. Powers of Attorney
C. Trusts
D. Marital property agreements
E. Buy-sell agreements

71. Gifting strategies
A. Inter-vivos gifting
B. Gift-giving techniques and strategies
C. Appropriate gift property
D. Strategies for closely-held business owners
E. Gifts of present and future interests
F. Gifts to non-citizen spouses
G. Tax implications
1) Income
2) Gift
3) Estate
4) Generation-skipping transfer tax (GSTT)

72. Gift tax compliance and tax calculation
A. Gift tax filing requirements
B. Calculation
1) Annual exclusion
2) Applicable credit amount
3) Gift splitting
4) Prior taxable gifts
5) Education and medical exclusions
6) Marital and charitable deductions
7) Tax liability

73. Incapacity planning
A. Definition of incapacity
B. Powers of attorney
1) For health care decisions
2) For asset management
3) Durable feature
4) Springing power
5) General or limited powers
C. Advance medical directives (e.g. living wills)
D. Guardianship and conservatorship
E. Revocable living trust
F. Medicaid planning
G. Special needs trust

74. Estate tax compliance and tax calculation
A. Estate tax filing requirements
B. The gross estate
1) Inclusions
2) Exclusions
C. Deductions
D. Adjusted gross estate
E. Deductions from the adjusted gross estate
F. Taxable estate
G. Adjusted taxable gifts
H. Tentative tax base
I. Tentative tax calculation
J. Credits
1) Gift tax payable
2) Applicable credit amount
3) Prior transfer credit

75. Sources for estate liquidity
A. Sale of assets
B. Life insurance
C. Loan

76. Powers of appointment
A. Use and purpose
B. General and special (limited) powers
1) 5-and-5 power
2) Crummey powers
3) Distributions for an ascertainable standard
4) Lapse of power
C. Tax implications

77. Types, features, and taxation of trusts
A. Classification
1) Simple and complex
2) Revocable and irrevocable
3) Inter-vivos and testamentary
B. Types and basic provisions
1) Totten trust
2) Spendthrift trust
3) Bypass trust
4) Marital trust
5) Qualified terminable interest property (QTIP) trust
6) Pour-over trust
7) §2503(b) trust
8) §2503(c) trust
9) Sprinkling provision
C. Trust beneficiaries: Income and
D. Rule against perpetuities
E. Estate and gift taxation

78. Qualified interest trusts
A. Grantor retained annuity trusts (GRATs)
B. Grantor retained unitrusts (GRUTs)
C. Qualified personal residence trusts (QPRTs or House-GRITs)
D. Valuation of qualified interests

79. Charitable transfers
A. Outright gifts
B. Charitable remainder trusts
1) Unitrusts (CRUTs)
2) Annuity trusts(CRATs)
C. Charitable lead trusts
1) Unitrusts (CLUTs)
2) Annuity trusts (CLATs)
D. Charitable gift annuities
E. Pooled income funds
F. Private foundations
G. Donor advised funds
H. Estate and gift taxation

80. Use of life insurance in estate planning
A. Incidents of ownership
B. Ownership and beneficiary considerations
C. Irrevocable life insurance trust (ILIT)
D. Estate and gift taxation

81. Valuation issues
A. Estate freezes
1) Corporate and partnership recapitalizations (§2701)
2) Transfers in trust
B. Valuation discounts for business interests
1) Minority discounts
2) Marketability discounts
3) Blockage discounts
4) Key person discounts
C. Valuation techniques and thefederal gross estate

82. Marital deduction
A. Requirements
B. Qualifying transfers
C. Terminable interest rule and exceptions
D. Qualified domestic trust (QDOT)

83. Deferral and minimization of estate taxes
A. Exclusion of property from the gross estate
B. Lifetime gifting strategies
C. Marital deduction and bypass trust planning
D. Inter-vivos and testamentary charitable gifts

84. Intra-family and other business transfer techniques
A. Characteristics
B. Techniques
1) Buy-sell agreement
2) Installment note
3) Self-canceling installment note (SCIN)
4) Private annuity
5) Transfers in trust
6) Intra-family loan
7) Bargain sale
8) Gift or sale leaseback
9) Intentionally defective grantor trust
10) Family limited partnership (FLP) or limited liability company (LLC)
C. Federal income, gift, estate, and generation-skipping transfer tax implications

85. Generation-skipping transfer tax (GSTT)
A. Identify transfers subject to the GSTT
1) Direct skips
2) Taxable distributions
3) Taxable terminations
B. Exemptions and exclusions from the GSTT
1) The GSTT exemption
2) Qualifying annual exclusion gifts and direct transfers

86. Fiduciaries
A. Types of fiduciaries
1) Executor/Personal representative
2) Trustee
3) Guardian
B. Duties of fiduciaries
C. Breach of fiduciary duties

87. Income in respect of a decedent (IRD)
A. Assets qualifying as IRD
B. Calculation for IRD deduction
C. Income tax treatment

88. Postmortem estate planning techniques
A. Alternate valuation date
B. Qualified disclaimer
C. Deferral of estate tax (§6166)
D. Corporate stock redemption (§303)
E. Special use valuation (§2032A)

89. Estate planning for non-traditional relationships
A. Children of another relationship
B. Cohabitation
C. Adoption
D. Same-sex relationship


1. Client and planner attitudes, values, biases and behavioral characteristics and the impact on financial planning
A. Cultural
B. Family (e.g. biological; non-traditional)
C. Emotional
D. Life cycle and age
E. Client's level of knowledge, experience, and expertise
F. Risk tolerance
G. Values-driven planning

2. Principles of communication and counseling
A. Types of structured communication
1) Interviewing
2) Counseling
3) Advising
B. Essentials in financial counseling
1) Establishing structure
2) Creating rapport
3) Recognizing resistance
C. Characteristics of effective counselors
1) Unconditional positive regard
2) Accurate empathy
3) Genuineness and self-awareness
D. Nonverbal behaviors
1) Body positions, movements, and gestures
2) Facial expressions and eye contact
3) Voice tone and pitch
4) Interpreting the meaning of nonverbal behaviors
E. Attending and listening skills
1) Physical attending
2) Active listening
3) Responding during active listening; leading responses
F. Effective use of questions
1) Appropriate types of questions
2) Ineffective and counterproductive questioning techniques