1. Explain how a trust may be used in incapacity planning.
2. Explain the difference between a guardianship and a conservatorship. Provide an example of when each would be applicable.
3. Explain the process of a obtaining a guardianship or conservatorship, including how a guardian or conservator would be appointed without a nomination by the incapacitated person.
4. Identify three estate planning techniques that a parent of minor children who is contemplating divorce might have a special interest in executing. Explain your response.
5. Explain whether the estate tax marital deduction is available for a transfer to a non-citizen spouse. Why or why not?
6. Donald and Susan are cohabitating, but are not married. They would like to plan for their future and are interested in using life insurance. Explain two strategies that they may implement to benefit the survivor of them.
7. Identify and explain three strategies that married couples may use to minimize their transfer tax liability that unmarried couples are not permitted to use.
8. Thomas and Juanita are a married couple. Thomas is a U.S. citizen and Juanita is a non-U.S. citizen. Thomas would like to transfer $1,000,000 to Juanita, outright, next month. He has come to you seeking advice as to his potential tax liability. What advice would you give Thomas and what, if any, is his potential tax liability?
9. Explain the tax consequences of utilizing and not utilizing a qualified domestic relations order (QDRO) to divide retirement assets in the event of a divorce. Why might a QDRO be beneficial and how does it work?
10. Identify and explain four techniques that can be used to prevent a child from a prior marriage from being disinherited.
11. Explain whether unmarried persons may enter into a property agreement, and if so, what provisions they may include in such agreement.
12. Explain whether a revocable living trust to benefit an unmarried cohabitant at death is a practical planning solution.
13. In what situations might an institutional fiduciary be more advantageous than an individual fiduciary? Provide at least two examples.
14. Who are the parties involved in a court ordered guardianship? Explain each of their roles.
15. Explain how multiple trusts are advantageous for spouses who are remarried and have children of a prior marriage.
16. Explain how life insurance planning techniques may be used to benefit a child following a divorce proceeding.
6 points each
17. Your client, who has provided for her spouse in her will by providing that the bulk of her estate be distributed to a power of appointment trust for the benefit of her husband, has just told you that her husband has been diagnosed with incipient Alzheimer’s disease. She wants to be assured that he can use as much of her estate as may be necessary for his care after her death, but she wants to be assured that any unused portion of her estate goes to her daughter by a previous marriage. Your client’s husband never adopted your client’s daughter, and he has no other living heirs. What concerns, if any, do you have regarding your client’s estate plan? What recommendations would you provide to your client to address such concerns? Explain your responses.
18. Roger and Mimi, an unmarried couple, are in the process of purchasing a new home. Mimi is the breadwinner in their relationship, and she would like to purchase 75% of the home in light of her higher income. However, Mimi does not get along with Roger’s adult child, Max, and does not want him to benefit from the property upon her death. Explain the tax and non-tax advantages and disadvantages of purchasing the property as joint tenants with right of survivorship and tenant in common.
19. Rhonda and Steve recently divorced, and Rhonda would like to secure Steve’s payments of child support. She is concerned that his financial irresponsibility will result in further court action and garnishment of his wages, and is also concerned about supporting the children in the event of his death. Identify and explain two techniques that Rhonda may suggest to secure the child support payments.
20. Paul was adopted by Adam and Abby when he was four years old. Paul is now 20 years old, and has become acquainted with his birth parents, Bob and Barb. Paul has discovered that Bob and Barb are extremely wealthy, and hopes to make a claim against their estate in the future to receive an inheritance. Assuming neither Adam and Abby nor Bob and Barb included Paul in their estate planning documents, explain whether Paul may make a claim against either estate as a beneficiary.
21. Eileen is creating a medical power of attorney and is debating between persons to name as her agent. She would like her mother to be her power of attorney, but she is concerned that her mother would make decisions without considering Eileen’s wishes. Explain whether Eileen’s mother must consider Eileen’s wishes, or whether she may base her decisions as an agent on her own personal preferences.
Anderson Case Study
22. Frank Holmes appears in very poor health while wife Grace is in frail health. To motivate them to do some basic estate planning, what issues might John raise?
Write at least one-half page (double-spaced) and cite and reference the textbook (as seen on the last page of the assignment) or add any other resources used.
Mannaioni, D. (2021). Estate Planning. Denver: College for Financial Planning.