BoK Statement

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)

Define

To state exactly the meaning of

Identify

To be aware of / to recognize and correctly name / to locate an appropriate resource

Explain

To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it

Compare

To note the similarities and differences between two or more things

Estimate

To determine an approximate value for

Calculate

To find the value using mathematics

Convert

To change from one form or purpose to another

Evaluate

To reach a conclusion or make a judgement through careful study

Interpret

To give the meaning of / to construe or understand / to translate orally

Read more about the Taxonomy used in the FP-BoK

Financial Planning Body of Knowledge