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Series 65 > Investment Recommendations > Flashcards

Flashcards in Investment Recommendations Deck (71)
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1

Three types of clients are _____, _____ and ______

personal, institutional, and fiduciary

2

TOD allows your assets to be transferred upon death to a ______ without going through _______

transferred to a named bene without going through probate

3

Another small bank version of TOD accounts is the _______ (not really a trust), which are ______

Totten Trust (don't need a trust document), but they are revocable by the depositor at any time

4

Family LPs are used for ______ purposes where the parents are typically the ______

estate planning purposes where the parents are the GPs

5

Assets contributed to a family LP are ______ since they are less liquid inside the LP

discounted

6

Does a sole proprietorship require any filing with the state?

NO - no state charter is required

7

SPs do not pay _____ bur rather ____

do not pay corporate income tax, just personal income tax

8

SPs have ______ liability

unlimited

9

GPs are formed under a general partnership ______; some states require that the agreement be ______

GP agreement; some states require that it be filed

10

An LP has _____ investors and is also known as ______ programs

have passive investors (also known as direct participation programs)

11

A C Corp is a ______ entity

taxable

12

A copy of the _______ is required to open a C Corp account

copy of the corporate charter

13

A copy of the ______ is needed to open an LP account

certificate of limited partnership

14

A corporation that has _____ or less is considered an ______ for tax purposes

100 shareholders or less is considered an S Corp

15

LLCs give the tax benefits of _____ without the restriction on # of ______

tax benefits of S Corps without the restriction of # of investors

16

The Settlor of the trust is also known as the _____ or the _____

grantor or the Trustor

17

The trustee is the _____ of the assets in the trust

manager

18

The legal list is a set of _____ that the trustee can invest in under the prudent man rule

securities

19

Trusts that are set up during one's lifetime are called _______

inter-vivos (revocable or non-revocable)

20

Trusts that are set up at your death according to your will are called ______

testamentary trusts (non-revocable)

21

In a revocable trust, the grantor retains _____ over the assets in the trust (and can remove them)

control

22

Income in a revocable trust is taxed at ______ to the _____

personal income levels to the grantor

23

For non-revocable trusts, any income in the trust is taxed to the _____ at _____ rates

taxed to the trust at trust rates

24

To open an estate account, you must have a copy of the ____, the ______, and the _____

death certificate, copy of the last will and testament, and the inheritance tax waivers

25

The five tax filing statuses are:

- single
- head of household
- qualifying widow(er) with dependent children
- married filing jointly
- married filing separately

26

If unmarried, choosing ____ or _____ status will result in a lower tax bill

head of household or widow(er) status

27

To qualify for widow(er) status, spouse must have died within last _____

2 years

28

A "capital needs" analysis is used to determine how much ______ in needed

life insurance

29

If life insurance is owned by an irrevocable trust or by another person, it is ______ from the decedent's (deceased's) gross estate

excluded

30

Transfer payments (alimony, pension, social security) received by retired individuals are NOT considered _____

earned income