knowledge topics
Foundations of Estates
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Identify key trends currently affecting estate advice, such as:
- Changing family circumstances
- Increase in size and complexity of estates
- Increase in number of individuals with assets across multiple jurisdictions
- Cross-border considerations
- Identify roadblocks to seeking out estate advice, such as:
- Fear of mortality
- Procrastination
- Cost
- Personal/cultural attitudes/choices
- Identify the level of government that is responsible for estate administration, estate succession, and laws related to wills and powers of attorney.
- Define an estate.
- Define time horizons associated with planning for an estate, such as:
- Time until death
- Time from death until assets are distributed and a clearance certificate from the Canada Revenue Agency (CRA) has been received
- Explain objectives of estate advice, such as:
- Management of current income taxes
- Management of taxes at death
- Efficient transition of assets and income to heirs
- Providing for obligations to dependents
- Payment of liabilities and final expenses at death
- Minimize disputes between heirs
- Explain the factors that may affect an estate, such as:
- Value of assets at death
- Value of liabilities at death
- Liquidity of assets
- Ownership of assets
- Location of assets (within province of residency, external to Canada)
- Testator’s wishes
- Existence of heirs
- Needs/circumstances of heirs
- Location of assets and heirs
- Exposure of assets to creditors
- Marginal tax rates of testators, heirs and trusts
- Family dynamics
- Business interests
- Estate freeze
- Life expectancy
- Personal attitudes
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
