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CHFC HS 300 > Module 11 (Planning For Special Circumstances) > Flashcards

Module 11 (Planning For Special Circumstances) Flashcards

1
Q

Over ____% of marriages end in divorce.

A

50%

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2
Q

Divorce rates have steadily ______________ over the last 10 years.

A

decreased

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3
Q

Which group are more likely to divorce, younger couples or older couples?

A

Younger couples

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4
Q

When a diverse the occurs your trusts, wills, and titles to your properties must be____________.

A

reviewed.

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5
Q

What is a QDRO?

A

A court initiated document that allows a participant’s retirement funds to be directed to another payee.

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6
Q

Social Security benefits are available if you’ve been married ____ years or more.

A

10

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7
Q

Alimony or separate maintenance payments _____ tax deductible by the payer.

A

are

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8
Q

Are alimony or separate maintenance payments tax deductible in the gross income of the recipient?

A

No

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9
Q

Child-support is ____ tax deductible by the payer.

A

not

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10
Q

If payments are reduced based on a child reaching a certain age, marrying, dying, or leaving school, those payments will be considered…

A

child support.

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11
Q

If you have a written divorce or separation agreement will your alimony be considered tax-deductible?

A

Yes

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12
Q

If payments are made in a form that’s not cash to your spouse, will your alimony be considered tax-deductible?

A

No

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13
Q

If your payments are designed as child-support, will your alimony be considered tax-deductible?

A

No

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14
Q

If your payments cease because your spouse dies, will your alimony be considered tax-deductible?

A

Yes

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15
Q

If you and your spouse live together or file joint income tax returns, will your alimony be considered tax-deductible?

A

No

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16
Q

Alimony payments will be considered “___________” if they violate the front loading-rules.

A

excess

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17
Q

Front-loading rules are triggered if there’s a drop of more than $________ in alimony in either the second or the third year after a divorce.

A

$15,000

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18
Q

The spouse that is paying alimony must report income in the third year of paying, and the recipient will receive a…

A

deduction.

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19
Q

If a life insurance policy’s transferred follow a divorce, any subsequent premiums paid by the transfer are…

A

tax-deductible.

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20
Q

If a life insurance policy is transferred to a spouse after a divorce, the paying spouse must report premiums paid as…

A

taxable income.

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21
Q

If the policy is not transferred, but the spouse is the names beneficiary the paid premiums are…

A

not deductible on income taxes a alimony.

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22
Q

Medical expenses are reduced by _____% when you file your taxes.

A

7.5

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23
Q

Cost for attending a special school are considered…

A

medical expenses.

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24
Q

A school teaching braille or lip reading, military school for mentally/physically handicapped students, boarding schools suggested by psychiatrist, or a school with a special curriculum are considered…

A

special schools.

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25
Q

For a parent to claim dependency exemption for a child, the child must a US citizen or under age ____ or under age _____ and a full-time student.

A

19

24

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26
Q

In order for a parent to claim the dependency exemption for a child, the child must not have filed a…

A

joint income tax return.

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27
Q

For a parent to claim the dependency exemption for a child, the child must have lived with the parent for more than…

A

half the year.

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28
Q

For a parent to claim a dependency exemption for child, the child can not have paid more than half of their own…

A

support.

29
Q

A severely _____________ can be claimed by a parent for the dependency exemption regardless of their age.

A

disabled child

30
Q

Expenses for ___________________ can be claimed on their taxes as expenses used to enable them to be gainfully employed.

A

babysitting or daycare

31
Q

In order to receive “dependent care credit” an individual must be supplying shelter for a dependent under the age of ____ or a spouse who is __________________.

A

13

physically or mentally he handicap.

32
Q

“Dependent care credit” is limited up to $_________ for one qualifying individual or $_________ for two qualifying individuals.

A

$3,000

$6,000

33
Q

“Dependent care credit” is also available for households with a spouse that earns a_________.

A

lower amount of income.

34
Q

What is the percentage range for calculating the “dependent care credit”?

A

20-35%

35
Q

The “adoption credit” is phased out for…

A

upper income taxpayers.

36
Q

If adopting a special needs child, you can receive ___________ regardless of how much you actually spend during the year.

A

full credit

37
Q

Name the 3 qualified adoption expenses.

A

Legal
Attorney fees
Court costs

38
Q

A _________________ trust is used to protect assets of someone who is expected to be in a long-term disability condition.

A

special-needs

39
Q

A special needs trust allows beneficiaries to receive…

A

Medicaid, SSI, and Social Security disability income.

40
Q

Trust assets cannot be reached by the government for…

A

reimbursement.

41
Q

Language in a trust prohibits trust principles from being used in place of_______________.

A

government benefits.

42
Q

What is the most widely used special-needs trust for estate planning?

A

Family Special Needs Trust

43
Q

This type of special needs trust is used by non-family members.

A

Third-party special needs trust

44
Q

This type of special needs trust is funded by lawsuit money.

A

Settlement special needs trust

45
Q

This type of special needs trust is ran by nonprofit organization’s that uses a combine set of assets from various sources to increase investment returns.

A

Pooled special needs trust

46
Q

A _______________ is a written document where the principal grants the attorney-in-fact the ability to act on the principles behalf.

A

power of attorney

47
Q 
Expedite Valley for Medicare
Arrange for in-home care
Hire necessary healthcare professionals
Employee companions
But cannot be used to control the property
A

Durable Power of attorney

48
Q

A ________________ is an arrangement in which a court-appointed guardian cares for a ward.

A

Guardianship

49
Q

_______________ takes care of the ward’s property.

A

Conservator

50
Q

The scope of the guardian’s powers may be limited or…

A

broad.

51
Q

A guardianship can be time-consuming, expensive, and restrictive because the…

A

court is involved.

52
Q

What is more appropriate than a guardianship?

A

Power of attorney

53
Q

What are sometimes used to avoid judicial guardianship?

A

Advanced medical directives

54
Q

Divorced parents, blended families, single people, same sex couples, and adult children caring for their parents are considered…

A

Nontraditional households

55
Q

Less than ____% of US households consist of married couples with children.

A

25

56
Q

What is another alternative for unmarried couples who want to outline how their assets will be handled?

A

domestic partnership agreement

57
Q

Although some states recognize same-sex marriage, it is not recognized at the___________.

A

federal level.

58
Q

Because same-sex marriage is not recognized at the federal level, these couples are not eligible for…

A

Social Security benefits.

59
Q

For nontraditional household federal gift tax applies to lifetime transfers, but not transfers…

A

at death.

60
Q

Nontraditional households cannot get ___________ federal gift tax deduction’s.

A

martial

61
Q

For nontraditional households, state inheritance taxes maybe due when transferring assets…

A

at death.

62
Q

State intestate laws do not leave property to…

A

unrelated parties.

63
Q

Individuals with nontraditional living arrangements are not able to protest a _____.

A

will.

64
Q

Individuals with nontraditional living arrangements may be denied…

A

hospital visitation.

65
Q

________________ are more likely to be asked about patient medical wishes if the individual is and a nontraditional living arrangement.

A

Blood relatives

66
Q

This is a strategy for unmarried partners where your property is titled as “joint tenants with rights of survivorship” to avoid probate.

A

Asset titling

67
Q

A “recovable living trust” is a strategy for unmarried partners that can…

A

Passes assets to a beneficiary without going through court probate.

68
Q

One strategy for unmarried partners is to have a life insurance. Which can be used to…

A

The lack of insurable interest

CHFC HS 300 (15 decks)

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