Investment Recommendations Flashcards
Three types of clients are _____, _____ and ______
personal, institutional, and fiduciary
TOD allows your assets to be transferred upon death to a ______ without going through _______
transferred to a named bene without going through probate
Another small bank version of TOD accounts is the _______ (not really a trust), which are ______
Totten Trust (don’t need a trust document), but they are revocable by the depositor at any time
Family LPs are used for ______ purposes where the parents are typically the ______
estate planning purposes where the parents are the GPs
Assets contributed to a family LP are ______ since they are less liquid inside the LP
discounted
Does a sole proprietorship require any filing with the state?
NO - no state charter is required
SPs do not pay _____ bur rather ____
do not pay corporate income tax, just personal income tax
SPs have ______ liability
unlimited
GPs are formed under a general partnership ______; some states require that the agreement be ______
GP agreement; some states require that it be filed
An LP has _____ investors and is also known as ______ programs
have passive investors (also known as direct participation programs)
A C Corp is a ______ entity
taxable
A copy of the _______ is required to open a C Corp account
copy of the corporate charter
A copy of the ______ is needed to open an LP account
certificate of limited partnership
A corporation that has _____ or less is considered an ______ for tax purposes
100 shareholders or less is considered an S Corp
LLCs give the tax benefits of _____ without the restriction on # of ______
tax benefits of S Corps without the restriction of # of investors
The Settlor of the trust is also known as the _____ or the _____
grantor or the Trustor
The trustee is the _____ of the assets in the trust
manager
The legal list is a set of _____ that the trustee can invest in under the prudent man rule
securities
Trusts that are set up during one’s lifetime are called _______
inter-vivos (revocable or non-revocable)
Trusts that are set up at your death according to your will are called ______
testamentary trusts (non-revocable)
In a revocable trust, the grantor retains _____ over the assets in the trust (and can remove them)
control
Income in a revocable trust is taxed at ______ to the _____
personal income levels to the grantor
For non-revocable trusts, any income in the trust is taxed to the _____ at _____ rates
taxed to the trust at trust rates
To open an estate account, you must have a copy of the ____, the ______, and the _____
death certificate, copy of the last will and testament, and the inheritance tax waivers
The five tax filing statuses are:
- single
- head of household
- qualifying widow(er) with dependent children
- married filing jointly
- married filing separately
If unmarried, choosing ____ or _____ status will result in a lower tax bill
head of household or widow(er) status
To qualify for widow(er) status, spouse must have died within last _____
2 years
A “capital needs” analysis is used to determine how much ______ in needed
life insurance