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Intro to FP > Special Circumstances > Flashcards

Special Circumstances Flashcards

1
Q

Community Property States

A

all property accumulated DURING the marriage is is divided in half

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2
Q

Equitable Division Law excludes what

A

certain property is owned separately by spouses and not subject to division like gifts, inheritances, property owned prior to marriage

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3
Q

Need for support =

A

total financial needs of the spouse - income (income from separate and marital property, from actual and imputed employment, income from any other source)

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4
Q

What is used to divide retirement assets

A

Qualified Domestic Relations Order

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5
Q

What plans are not covered by QDRO

A

military and government retirement plans

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6
Q

Do you need a QRDO for an IRA transfer?

A

No - but rollover rules apply if distribution not placed in recipients account within 60 days

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7
Q

Is alimony tax deductible for the payor?

A

No

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8
Q

Is alimony recorded as income for the receiver?

A

No

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9
Q

Is child support tax deductible or reported as income?

A

No

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10
Q

How do you qualify for Social Security Disability?

A

if you can’t perform any Significant Gainful Activity. Disability must be expected to last at least 1 year or result in death

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11
Q

What is the other option for disability besided Social Security Disability?

A

Private or employer provided disability insurance

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12
Q

Elimination period for SSDI

A

5 months

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13
Q

Supplemental Needs Trust is for whom

A

for disabled individual - won’t jeopardize eligibility for Medicaid/Medicare, SSDI and other Govt benefits

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14
Q

What can help a terminally Ill person receive funds

A

Accelerated Death Benefit or Living Benefits Endorsement - can receive part of death benefit early
Viatical Settlement

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15
Q

Viatical Settlement

A

assign ownership of life insurance to viatical settlement company - receive tax free percentage of death benefit

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16
Q

Do unmarried couples receive SS survivor benefit?

A

No - don’t get Medicaid coverage for partner’s nursing home stay either

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17
Q

Nontraditional Couples should have what paperwork

A

domestic partner agreement, wills, health care proxy and power of attorney

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18
Q

Withdrawing from a 401k Age 59 1/2 rule as well as what

A

if you are 55 and older and get fired you withdrawal w/o the 10% penalty

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19
Q

Percentage state unemployment insurance pays

A

typically 50% - benefits paid for 26 weeks

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20
Q

How long can you receive unemployment insurance?

A

26 weeks - unless during periods of high unemployment

21
Q

Other short term unemployment benefits employers made provide

A

life insurance, pension credit, long/short term disability credit, tuition reimbursement, vacation accrual

22
Q

Documents available to protect special needs children

A

power of attorney, guardianship choices, wills, special needs trusts

23
Q

Government benefits for special needs children

A

government offsets in social security disability, medicaid

24
Q

Should you leave assets directly to a special needs child?

A

No - do not name the child direct beneficiary of LI policy, annuity or retirement plan

25
Q

What is an advantage of taxing a windfall upfront?

A

Taxes can be paid from the lump sum instead of from the owner’s estate

26
Q

What part of Life Insurance proceeds could be taxable?

A

If the beneficiary takes annuity payments

27
Q

How is property transferred between spouses or former spouses treated incident to a divorce?

A

Property is treated as if it were acquired by a GIFT 🎁 - the transferor BASIS in the property is CARRIED OVER to the transferee

28
Q

What is the FIRST thing you should do after being laid off?

A

File for unemployment since there is a 1 week waiting period

29
Q

Do you have to notify the bank holding your mortgage if you get laid off?

A

Not necessarily - you may have enough $ from unemployment to pay the mortgage

30
Q

Are living wills recognized in all states?

A

NO

31
Q

Does power of attorney allow that person to make decisions before youre incapacitated?

A

Yes. As soon as it goes into effect they can make decisions whether or not you’re incapacitated

32
Q

Excess alimony payments that are subject to recapture, are they taxable?

A

Not taxable to the RECIPIENT

33
Q

Are child support payments deductible to the Payor?

A

No

34
Q

Alimony is deductible to who and taxable to who

A

deductible by the payor and taxable to the recipient

35
Q

Property settlements and child support in divorce settle how

A

property settlements and child support are not deductible by the payor and are not taxable to the recipient

36
Q

What is most difficult to split up in divorce

A

defined benefit plans because they pay out in the future

37
Q

How to typically value a define benefit in a divorce

A

if its being evaluated as part of a property settlement it will be given a present value

38
Q

How can a divorcee losing health insurance get coverage?

A

COBRA - divorce is a qualifying event for COBRA

39
Q

How long can a divorced spouse get coverage with COBRA

A

36 months

40
Q

Divorced spouse may still claim SS how

A

-married at least 10 years
- divorced for at least 2 years
-may claim SS based on ex-spouse’s earnings

41
Q

If your ex spouse claims SS benefits does that impact your benefits?

A

No

42
Q

Spousal IRA

A

nonworking spouse can contribute to an IRA based on the taxpayer’s earnings

43
Q

If spouse participates in employer plan, and files jointly, what can the spouse do?

A

Make a deductible IRA contribution provided income is below AGI

44
Q

Intestacy Rights re:nontraditional couples

A

surviving partner of a nontraditional marriage will often not have rights to a decent’s property if a will is not in place

45
Q

Tusts do what

A

-management of property
-accumulation/distribution of income
-distribution of trust corpus to bennys
-withdrawal powers in bennys

46
Q

Would a trust company provide investment management services?

A

Yes includes investment management and wealth preservation

47
Q

Do trust cos offer asset management services?

A

Yes like bill pay, check writing and other services

48
Q

Is a trust company a fiduciary?

A

Yes

Intro to FP (14 decks)

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