knowledge topics
Estate Obligations
KNOWLEDGE EXPECTED OF: CFP® Professionals Only
- Identify those obligations that may retain the highest priority of payment from an estate, such as:
- Funeral expenses
- Income taxes
- Estate taxes / probate fees
- Solicitor’s costs
- Personal representative / estate administrator costs
- Payments of debts
- Property taxes
- Utility payments
- Identify that the order of priority for payments from an estate may vary according to provincial/territorial legislation.
- Explain methods for creditor-proofing assets from claims against the estate, such as:
- Naming beneficiaries on segregated funds, insurance policies and registered assets
- Using insurance products with named beneficiaries
- Setting up a holding company or inter vivos trust
- Plan for a testamentary trust in a will
- Setting up an Individual Pension Plan
- Incorporation of business interests
Glossary of Verbs (mouse over to see definition)
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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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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 judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK
previous / Dying without a Will (Intestate)