KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Identify that any individual may contribute to an Eligible Funeral Arrangement1 on behalf of another individual.
- Explain the relevant contribution limits for an arrangement to qualify as or remain as an Eligible Funeral Arrangement.
- If the arrangement covers only funeral services for an individual
- If the arrangement covers only cemetery services for an individual
- If the arrangement covers both funeral services and cemetery services for an individual
- Explain the tax impact associated with an Eligible Funeral Arrangement.
- For contributions made to an arrangement by an individual
- For contributions made to an arrangement by a corporation on behalf of an employee
- For contributions made to an arrangement by a corporation on behalf of a shareholder
- For earnings under the arrangement
- Identify that the value of funds held within an Eligible Funeral Arrangement are insured under the purchaser’s name.
- Identify that in some jurisdictions, funeral homes must guarantee the future cost of services fully pre-paid using an Eligible Funeral Arrangement.
- Explain the impact when relevant contributions exceed the allowable contribution limits.
- Status of the arrangement when it is in place for one individual
- Status of the arrangement when it is in place for more than one individual
- Tax impact
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To state exactly the meaning of
To be aware of / to recognize and correctly name / to locate an appropriate resource
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To note the similarities and differences between two or more things
To determine an approximate value for
To find the value using mathematics
To change from one form or purpose to another
To reach a conclusion or make a judgement through careful study
To give the meaning of / to construe or understand / to translate orally