knowledge topics
Probate
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- 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 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
- 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
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
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