United States Estate Tax

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.


Additional Knowledge Expected of CFP Professionals
  • Define U.S. situs property.
  • Identify that U.S estate tax may apply to any individual with U.S. situs property. 
  • Identify property that may be included in the valuation of worldwide estate for U.S. estate tax purposes.
  • Identify property that may not be included in the valuation of worldwide estate for U.S. estate tax purposes. 
  • Estimate the value of an individual’s worldwide estate. 
  • Define the unified credit.
  • Identify the current limit of the unified credit at which United States estate taxes are not payable.
  • Identify the current limit of an individual’s worldwide estate at which United States estate taxes are not payable. 
  • Identify when United States estate tax may be payable.
    • Value of United States estate
    • Value of worldwide estate
  • Explain when a non-resident may need to file an estate return in the United States. 
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