Module 11 (Planning For Special Circumstances) Flashcards
Over ____% of marriages end in divorce.
50%
Divorce rates have steadily ______________ over the last 10 years.
decreased
Which group are more likely to divorce, younger couples or older couples?
Younger couples
When a diverse the occurs your trusts, wills, and titles to your properties must be____________.
reviewed.
What is a QDRO?
A court initiated document that allows a participant’s retirement funds to be directed to another payee.
Social Security benefits are available if you’ve been married ____ years or more.
10
Alimony or separate maintenance payments _____ tax deductible by the payer.
are
Are alimony or separate maintenance payments tax deductible in the gross income of the recipient?
No
Child-support is ____ tax deductible by the payer.
not
If payments are reduced based on a child reaching a certain age, marrying, dying, or leaving school, those payments will be considered…
child support.
If you have a written divorce or separation agreement will your alimony be considered tax-deductible?
Yes
If payments are made in a form that’s not cash to your spouse, will your alimony be considered tax-deductible?
No
If your payments are designed as child-support, will your alimony be considered tax-deductible?
No
If your payments cease because your spouse dies, will your alimony be considered tax-deductible?
Yes
If you and your spouse live together or file joint income tax returns, will your alimony be considered tax-deductible?
No
Alimony payments will be considered “___________” if they violate the front loading-rules.
excess
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.
$15,000
The spouse that is paying alimony must report income in the third year of paying, and the recipient will receive a…
deduction.
If a life insurance policy’s transferred follow a divorce, any subsequent premiums paid by the transfer are…
tax-deductible.
If a life insurance policy is transferred to a spouse after a divorce, the paying spouse must report premiums paid as…
taxable income.
If the policy is not transferred, but the spouse is the names beneficiary the paid premiums are…
not deductible on income taxes a alimony.
Medical expenses are reduced by _____% when you file your taxes.
7.5
Cost for attending a special school are considered…
medical expenses.
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…
special schools.
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.
19
24
In order for a parent to claim the dependency exemption for a child, the child must not have filed a…
joint income tax return.
For a parent to claim the dependency exemption for a child, the child must have lived with the parent for more than…
half the year.
For a parent to claim a dependency exemption for child, the child can not have paid more than half of their own…
support.
A severely _____________ can be claimed by a parent for the dependency exemption regardless of their age.
disabled child
Expenses for ___________________ can be claimed on their taxes as expenses used to enable them to be gainfully employed.
babysitting or daycare
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 __________________.
13
physically or mentally he handicap.
“Dependent care credit” is limited up to $_________ for one qualifying individual or $_________ for two qualifying individuals.
$3,000
$6,000
“Dependent care credit” is also available for households with a spouse that earns a_________.
lower amount of income.
What is the percentage range for calculating the “dependent care credit”?
20-35%
The “adoption credit” is phased out for…
upper income taxpayers.
If adopting a special needs child, you can receive ___________ regardless of how much you actually spend during the year.
full credit
Name the 3 qualified adoption expenses.
Legal
Attorney fees
Court costs
A _________________ trust is used to protect assets of someone who is expected to be in a long-term disability condition.
special-needs
A special needs trust allows beneficiaries to receive…
Medicaid, SSI, and Social Security disability income.
Trust assets cannot be reached by the government for…
reimbursement.
Language in a trust prohibits trust principles from being used in place of_______________.
government benefits.
What is the most widely used special-needs trust for estate planning?
Family Special Needs Trust
This type of special needs trust is used by non-family members.
Third-party special needs trust
This type of special needs trust is funded by lawsuit money.
Settlement special needs trust
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.
Pooled special needs trust
A _______________ is a written document where the principal grants the attorney-in-fact the ability to act on the principles behalf.
power of attorney
Expedite Valley for Medicare Arrange for in-home care Hire necessary healthcare professionals Employee companions But cannot be used to control the property
Durable Power of attorney
A ________________ is an arrangement in which a court-appointed guardian cares for a ward.
Guardianship
_______________ takes care of the ward’s property.
Conservator
The scope of the guardian’s powers may be limited or…
broad.
A guardianship can be time-consuming, expensive, and restrictive because the…
court is involved.
What is more appropriate than a guardianship?
Power of attorney
What are sometimes used to avoid judicial guardianship?
Advanced medical directives
Divorced parents, blended families, single people, same sex couples, and adult children caring for their parents are considered…
Nontraditional households
Less than ____% of US households consist of married couples with children.
25
What is another alternative for unmarried couples who want to outline how their assets will be handled?
domestic partnership agreement
Although some states recognize same-sex marriage, it is not recognized at the___________.
federal level.
Because same-sex marriage is not recognized at the federal level, these couples are not eligible for…
Social Security benefits.
For nontraditional household federal gift tax applies to lifetime transfers, but not transfers…
at death.
Nontraditional households cannot get ___________ federal gift tax deduction’s.
martial
For nontraditional households, state inheritance taxes maybe due when transferring assets…
at death.
State intestate laws do not leave property to…
unrelated parties.
Individuals with nontraditional living arrangements are not able to protest a _____.
will.
Individuals with nontraditional living arrangements may be denied…
hospital visitation.
________________ are more likely to be asked about patient medical wishes if the individual is and a nontraditional living arrangement.
Blood relatives
This is a strategy for unmarried partners where your property is titled as “joint tenants with rights of survivorship” to avoid probate.
Asset titling
A “recovable living trust” is a strategy for unmarried partners that can…
Passes assets to a beneficiary without going through court probate.
One strategy for unmarried partners is to have a life insurance. Which can be used to…
The lack of insurable interest
