Syllabus and Grading Policy (Tentative subject to text changes)

Transcription

1 Golden Gate University Masters of Science in Financial Planning Course FI Units Faculty: Ross W. Richardson, MS, CFP Syllabus and Grading Policy (Tentative subject to text changes) 1. Course Description: The purpose of this course is to introduce financial planners to estate planning tools and strategies that assist a client in developing, maintaining and transferring his/her wealth consistent with objectives. This course will focus on the theoretical aspects of estate planning complemented with a pragmatic approach to utilizing techniques discussed. The purpose of most planning is to achieve a balance between tax savings for clients and peace of mind in dispensing with a client s assets to loved ones, beneficiaries and charitable institutions. Indeed, as estate planning involves federal, state, and local laws, coupled with ever changing financial markets, the simple task of drafting a will to meet a client s needs becomes daunting. However, my goal as your professor is to give you the necessary road map in creating a well-thought out plan. To continue the analogy, to get to Los Angeles from San Francisco, you can take many roads such as the I-5, the US 101, or Route 1. All these paths work, but each provides a different adventure. Please note FI 426 satisfies part of the educational requirements to sit for the CFP examination. 2. Course Objectives: This class is designed to provide you with the ability to identify issues arising out of modern estate planning. Specifically, you will be able to design, evaluate and contribute to an estate plan for clients. Substantive Estate Planning: A. Use and misuse of the three main types of wills, three types of powers of attorney and three to ten types of Revocable Living Trusts B. Basics of incapacity planning, including court procedures for incapacitated clients C. Principles of title, ownership, control and beneficial enjoyment D. Legal principles pertaining to trustees, fiduciaries and the use of trusts 1

2 E. Principles of Medicaid planning and other planning that involves integrating government programs into the client s estate, such as special needs planning F. The use of irrevocable gifting trusts in estate planning, including GRATs, IDITs, ILITs, Crummey-type trusts, 2503(c) trusts, Totten trusts, and Medi-Cal Trusts G. Planned giving principles, including the use of charitable trusts (CRTs, CLTs) and foundations (Donor-Advised Funds, Private Nonoperating Foundations and Supporting Organizations) H. Family business entity planning, including Family Limited Partnerships (FLPs), Family Limited Liability Companies (FLLCs), and closely-held corporations I. Techniques for funding trusts, including gifts, notes and annuities of different types J. Fundamentals of estate and gift taxation K. Fundamentals of probate law and procedure Pragmatic use of the above listed topics to: 1. Address the skills and knowledge of financial planning that are represented in the full range of topics covered by the CFP examination. 2. Use quantitative, analytical, and technical skills needed to address complex financial situations. 3. Apply such knowledge to real-world problems in financial planning. 4. Enable the student to be aware of the legal and regulatory environment in which financial planning occurs and familiarity with relevant licensing, reporting, and compliance requirements. 5. Recognize the ethical dilemmas that may arise in financial planning practice and familiarity with appropriate responses to those dilemmas, as reflected in the CFP Board s Code of Ethics and Professional Responsibility. 3. Required Materials: Fontaine, Constance, Fundamentals of Estate Planning, 12 th College Press 2005) ISBN Edition (The American Leimberg, et al., Tools and Techniques of Estate Planning, 14 th Edition (The National Underwriter Company 2007) ISBN

3 4. Contacting the instructor: 5. Course Requirements, Student Responsibilities, Evaluations Course Requirements Takes each of approximately 15 weekly quizzes (online). Weekly online discussions. 1 mid-term and 1 final exam. Student Responsibilities It is assumed that the student will have read the assigned readings, viewed any related uploaded lectures, and taken the online quiz each week. Please make the appropriate time allowances for preparing for each session. Being adequately prepared for each discussion is a key part of your responsibility in this course. The class format is one of active learning, rather than memorization. Preparation and Participation Take all quizzes. Provide input on each discussion. Provide input on fellow student s input to discussions. Evaluations You will receive an opportunity to evaluate the course and instructor at least once this term. 6. Course Procedure You will have assigned reading to be done for each week and before each discussion and quiz. As this is an online course, we will have the ability to spend more time on some things, in addition to using the internet as a valuable resource for current updates in estate planning. This is excellent for our class as this vast area is always in flux, and perhaps this year will allow more certainty in your learning as the sunset provisions looming over estate taxation have now been settled, at least for a few years. Week 1: The Estate Planning Process. Readings: American College Fundamentals of Estate Planning ( AC ) Chapters 1 & 2; National Underwriter Tools & Techniques of Estate Planning ( NU ) Chapters 1-6 Overview of Estate Planning Data Gathering and Analysis 3

4 Death-Sensitization for the Estate Planner The Unauthorized Practice of Law Ethics Malpractice in Estate Planning Week 2: Property Ownership Readings: AC 3, 4, 13; NU 7, 19 Ownership and Transfer of Property Federal Income Taxation Week 3: Gross Estate Readings: AC Week 4: Federal Estate Taxation Readings: AC 15-18; NU 15, 20 Estate Tax Non-US Persons in the Estate Plan Week 5 Federal Gift Taxation, Generation-Skipping Transfer Tax, and Lifetime Gifting Strategies Readings: NU 17, 18, 22, 23 Gift Tax Gifts Generation-Skipping Transfer Tax Week 6 Probate Process, Intestate Succession, and Incapacity Planning Readings: AC 8, 9; NU 8-10, 12-14, 55, 56 Uniform Gifts / Transfers to Minors Acts Wills How to Review a Will Power of Appointment Selection of Executor, Trustee, and Attorney Probate Executor s Primary Duties Elderly and Disabled (Planning for) Durable Power of Attorney 4

5 Week 7 Week 8 Mid-term Exam Revocable Living Trusts: A-B Trusts, QTIPs, and QDOTs Readings: AC 5; NU 24, 28, 29 Marital Deduction and Bypass Trusts Revocable Trust Tax Basis Revocable Trust Week 9 Irrevocable Lifetime Trusts: ILIT, CRT, GRAT, and IDIT Readings: NU 25, 26, 30, 31, (look over 33) Life Insurance Irrevocable Life Insurance Trust Grantor deemed-owner trusts Section 2503(b) and 2503(c) Trusts Grantor Retained Interest Trusts (GRAT, GRUT, QPRT) Week 10 Charitable Planning Readings: NU Chapters 32, 33 and 34 Charitable Contributions Charitable Split Interest Trusts Week 11: Valuation Planning Introduction to Business Succession Readings: AC 10; NU 38, 43, 44, 58, 59 Split Interest Purchase of Property Family Limited Partnerships Limited Liability Companies Valuation planning Freezing Techniques Corporations and Partnerships Week 12 Business Succession and Life Insurance Readings: AC 11; NU 40 Buy-Sell (Business Continuation) Agreement 5

6 Week 13: Installment Sales, Self-Canceling Installment Notes, and Private Annuity Readings: NU Installment Sales and SCINs Private Annuity Interest-Free and Below Market Rate Loans Introduction to Retirement Plan Distribution Planning and Annuities Week 14 Retirement Plan Distribution Planning and Annuities Readings: NU 52 Profit Sharing / 401 (k) / Pension Plan Week 15: Post Mortem Planning: Disclaimer, 303 Stock Redemptions, and 6166 Extension Readings: AC 23; NU 11, 16, 21, 41 Disclaimer Extensions of Time to Pay Estate Tax Post mortem Tax Elections Section 303 Stock Redemption Week 16: Final Exam 7. Grading Policy Each student s grade will be based on the overall performance in the following areas: weekly class participation (bonus of up to 10%), quizzes (25%), mid-term exam (25%) and comprehensive final exam (50%). Areas of Assessment Percent of Grade Quizzes 25% Mid-Term Exam 25% Final Exam 50% This course requires weekly participation in the discussion area. Each student is expected to participate in the discussions. In addition, there is a mid-term and a final exam. Class participation grade will be based on a student s preparation as demonstrated by the nature and extent of their discussion. Initially, we would expect each student to post a substantive discussion item at least twice a week, and at least 24 hours apart from each other. This will facilitate on-going dialogues which will further your learning experience 6

7 and prevent those last minute posters we all know so well. 8. Instructor Bio Ross Richardson serves as President of Pembroke Advisors, Inc., an SEC Registered Investment Advisor and oversees the firm s financial advisory and investment management areas. Ross works with a diverse clientele including corporate executives, business owners, professional athletes and wealthy families. A Certified Financial Planner professional since 1987, he received his Bachelor in Business Administration and Masters of Science in Finance degrees from Louisiana State University. His professional experience includes six years as an officer in commercial banking and seven years with the Houston-based financial and investment advisory firm, Linscomb & Williams. Ross is a member of the Financial Planning Association (FPA) and served two terms on the National Board of Directors of The Institute of Certified Financial Planners (ICFP), a predecessor to FPA. Ross also formerly sat on the Board of the Houston Society of the ICFP including the offices of Chairman and President. He was awarded the Houston Society s first annual CFP Practitioner of the Year honor in He has served as a Mentor for the FPA s Residency Program for newly licensed Certified Financial Planner designees and in other leadership roles for the FPA. Ross has been a fundraising and committee volunteer for the Alzheimer s Association Greater Houston Chapter, and has served as Treasurer for his local homeowner s association. He is presently a steering committee member for the Texans for Pennies for Peace group. Mr. Richardson has been interviewed and quoted in such publications as The Wall Street Journal Online, Money magazine, the Houston Chronicle, the Houston Post, Texas Lawyer, the Journal of Financial Planning, CFP Today, Research Magazine and Investment Advisor. He is an adjunct professor for Golden Gate University s CyberCampus and has served as an instructor for the University of Houston s Certified Financial Planner program. He has participated as a panelist for Money Magazine s Personal Finance Seminars. He has also spoken before various professional groups on topics related to the financial planning profession. Ross currently resides in Spring, Texas with his wife, Tina, and has two children, Dan and Gracie. 7