Partnerships, 529s, Trust and Estates, Employee Benefit Plans

Question 1

Under what three circumstances could a covered member get into independence trouble when asked to be executor of an estate?

Answer 1

1. )The covered member has authority to make investment decisions.
2. )More than 10% of the estate’s assets are in the client’s stock.
3. )The estate owns more than 10% of the client’s stock

Question 2

A general partner’s interest in the investments of the general partnership is what?

Answer 2

Direct

Question 3

Why are the owners of 529 accounts used for savings deemed to have a direct financial interest in both the plans and their investments?

Answer 3

Because they can determine before investing which firms the plan has invested in

Question 4

Name two conditions under which a covered member who as grantor sets up a trust would have direct interests in its underlying investments.

Answer 4

Any two of these conditions: If:

1. )The covered member has the ability to amend or revoke the trust.
2. )The covered member has the authority to control the trust.
3. )The covered member has the ability to supervise or participate in the trust’s investment decisions.
4. )The underlying trust investments ultimately will revert to the covered member as grantor

Question 5

What two forms of management do limited liability corporations tend to have?

Answer 5

Member management and agent management