Probate
KNOWLEDGE EXPECTED OF: QAFP® Professionals
Highest Knowledge Level: Understanding
Knowledge Levels and Associated Verbs
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Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
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Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
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Application
Ability to put information to use / to use knowledge for relevant, practical purposes
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Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Determine
To ascertain / to come to a decision, such as by investigation or reasoning
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
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Hold cursor over or click on each term to read its definition.
- Define probate.
- Identify that the process for probate may differ across jurisdictions.
- Identify variables that may be used to determine the jurisdiction where probate is required.
- Based on residency of the deceased
- Based on residency of the asset
- Identify characteristics of assets that may be subject to probate, such as:
- Owned wholly by the deceased individual
- Owned as a tenant in common by the deceased individual
- Do not have a beneficiary named
- Have the estate named as beneficiary
- Form part of deceased’s estate
- Identify the treatment of an asset for which there is no named beneficiary.
- Explain the impact of naming the estate of the deceased individual as the beneficiary of an asset.
- Identify characteristics of assets that may not be subject to probate, such as:
- Owned joint with right of survivorship
- Have a named beneficiary
- Do not form part of the deceased’s estate
- Life interest in property
- Identify assets for which a beneficiary may be named, such as:
- Registered Retirement Savings Plan (RRSP)
- Registered Retirement Income Fund (RRIF)
- Tax-Free Savings Account (TFSA)
- Locked-In Retirement Savings Vehicles
- Locked-In Retirement Income Vehicles
- Segregated Fund
- Life Insurance Policy
- Annuity
- Pension Plan
- Explain the importance of naming a beneficiary for assets that are permitted to have a named beneficiary.
- Identify assets that may not be subject to probate, such as:
- Registered Plans (excluding an RDSP and RESP) with a named beneficiary
- Segregated funds with a named beneficiary
- Insurance policies with a named beneficiary
- Assets owned jointly with right of survivorship
- Identify methods that may be used to reduce probate fees, such as:
- Name beneficiaries for registered plans
- Name beneficiaries for insurance policies
- Own assets jointly with right of survivorship
- Gift property to intended beneficiaries before death
KNOWLEDGE EXPECTED OF: CFP® Professionals
Highest Knowledge Level: Application
Knowledge Levels and Associated Verbs
|
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
||||||
|---|---|---|---|---|---|---|---|---|---|
|
Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Define probate.
- Identify that the process for probate may differ across jurisdictions.
- Identify variables that may be used to determine the jurisdiction where probate is required.
- Based on residency of the deceased
- Based on residency of the asset
- Identify characteristics of assets that may be subject to probate, such as:
- Owned wholly by the deceased individual
- Owned as a tenant in common by the deceased individual
- Do not have a beneficiary named
- Have the estate named as beneficiary
- Form part of deceased’s estate
- Identify the treatment of an asset for which there is no named beneficiary.
- Explain the impact of naming the estate of the deceased individual as the beneficiary of an asset.
- Identify characteristics of assets that may not be subject to probate, such as:
- Owned joint with right of survivorship
- Have a named beneficiary
- Do not form part of the deceased’s estate
- Life interest in property
- Identify assets for which a beneficiary may be named, such as:
- Registered Retirement Savings Plan (RRSP)
- Registered Retirement Income Fund (RRIF)
- Tax-Free Savings Account (TFSA)
- Locked-In Retirement Savings Vehicles
- Locked-In Retirement Income Vehicles
- Segregated Fund
- Life Insurance Policy
- Annuity
- Pension Plan
- Explain the importance of naming a beneficiary for assets that are permitted to have a named beneficiary.
- Identify assets that may not be subject to probate, such as:
- Registered Plans (excluding an RDSP and RESP) with a named beneficiary
- Segregated funds with a named beneficiary
- Insurance policies with a named beneficiary
- Assets owned jointly with right of survivorship
- Identify methods that may be used to reduce probate fees, such as:
- Name beneficiaries for registered plans
- Name beneficiaries for insurance policies
- Own assets jointly with right of survivorship
- Gift property to intended beneficiaries before death
Additional Knowledge Expected of CFP Professionals
- Identify the probate fee schedule for a jurisdiction.
- Estimate the probate fees payable for an estate.
- Identify other costs that may apply when probating a will.
- Identify methods that may be used to reduce probate fees, such as:
- Name beneficiaries for registered plans
- Name beneficiaries for insurance policies
- Own assets jointly with right of survivorship
- Gift property to intended beneficiaries before death
- Hold assets in a trust
- Hold assets in a holding company
- Issue a donation mortis causa
- Use multiple wills for different jurisdictions
- Use multiple wills for certain assets
- Explain the factors to consider in assessing methods to reduce probate fees, such as:
- Immediate income tax consequences
- Future income tax liability
- Impact on probate
- Costs
- Potential claims by creditors
- Potential claim under family law
- Loss of control of property
- Impact on family / heirs
- Impact of death of heirs prior to testator
previous / Dying without a Will (Intestate)