R29: Taxes And PWM Flashcards by Chani Unknown | Brainscape

Q

What are the formulas for accrual, deferred, wealth, tax deferred and tax exempt?

A

See notes

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Q

What are the two ways to estimate core capital?

A

Mortality tables: probability of survival of couple (assume probabilities are independent), discount to today and ×value

Monte carlo: chance of ruin

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Q

What are the formulas for gifting vs bequests? And when gifting is tax free? And when donor pays tax?

A

See notes

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Q

Trusts: revocable vs irrevocable, fixed vs discretionary. Benefits?

A

Irrevocable good if want to keep assets separate and protect. Discretionary good if you want flexibility to pay distribute in the most tax efficient way.

Control, protection, tax reduction

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Q

What are the three methods to provide tax relief?

A

Credit
Exemption
Deduction

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