knowledge topics
EFA Contributions
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
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
