Down to the wire

Question 1

ILIT

Answer 1

NO rights

can only GIFT premium

Question 2

AMT for business

Answer 2

profit over $250K

Question 3

inflation risk

Answer 3

period certain immediate annuity

Question 4

imagination capital

Answer 4

save for a goal (negative emotion if not reach)

Question 5

Schiller

Answer 5

= volatility puzzle (disputed efficient market)

prices move more than should on earnings and interest rates

Question 6

2503 (c)

Answer 6

NO crummery provision (add back within 3 years)

Question 7

prospect theory

Answer 7

1. reference dependence
2. loss aversion
3. nonlinear probability weighting

Question 8

divorce pension division

Answer 8

QDRO

NOT wait and see

Question 9

Fama & French

Answer 9

• value ETF can match active manager performance

- stock managers cannot consistently beat market

Question 10

relative comparison

Answer 10

anchoring

Question 11

GSTT exemption

Answer 11

$22,360,000

Question 12

representative bias

Answer 12

“past performance does not predict future results”

Question 13

NOT completed gift

Answer 13

revocable trust

Question 14

underperform mutual funds

Answer 14

return chasing

recent info weighting

Question 15

reference dependence

Answer 15

specific $ amount

Question 16

behavioral finance

Answer 16

1. sunk cost
2. availability
3. confirmation

Question 17

sub-optimal decisions

Answer 17

1. framing
2. heuristics
3. bias

Question 18

disposition effect

Answer 18

lock in gains on winning (unwillingness to sell losses)

Question 19

qualified disposition from ROTH IRA

Answer 19

prior 59.5, $10,000 for first home

Question 20

6166

Answer 20

first 5 years are NO interest

* business value must exceed 35%

Question 21

child/ dependent care credit

Answer 21

limit $3,000 ($6,000 married)
reduce upper-income
child under 13

Question 22

single-parent home

Answer 22

life insurance

Question 23

education/ child tax bracket

Answer 23

1. American opportunity
2. lifetime learning
3. child tax credit

Question 24

POLST

Answer 24

doctor order for sustaining life

Question 25

provisional income NOT taxes

Answer 25

less than $25,000

Question 26

exemption for inclusion in state

Answer 26

5% or $5,000 | HEMS (not cash)

Question 27

disclaimer effective

Answer 27

don't want assets in estate and walk away | **in writing

Question 28

capital gain exclusion

Answer 28

$250K ($500k couple) for home sale

Question 29

Code of Ethics

Answer 29

1. Objectivity 2. Competence 3. Fairness 4. Confidentiality 5. Professionalism 6. Diligence

Question 30

testamentary trust

Answer 30

set up for children after death | *does NOT avoid probate

Question 31

TCJA

Answer 31

exclusion doubled for period of years

Question 32

basis

Answer 32

amount tax paid + improvements

Question 33

1041

Answer 33

1 year after divorce, property transfer not traxable

Question 34

spousal support

Answer 34

deducted if before 1/1/19

Question 35

wait to take social

Answer 35

increase 8% per year