CFG Retirement Income & Estate Planning 5

Question 1

A client in her late 70s wants to make annual gifts to reduce her taxable estate. What is the 2024 annual gift tax exclusion per recipient?

Accepted Answer

$18,000

Answer

The annual gift tax exclusion for 2024 is $18,000 per recipient, allowing donors to transfer this amount to as many individuals as they wish each year without gift tax or using the lifetime exemption.

Question 2

Which trust type is commonly used by a surviving spouse to qualify assets for the unlimited marital deduction while controlling who ultimately inherits them, preventing remarriage from diverting assets?

Accepted Answer

QTIP (Qualified Terminable Interest Property) trust

Answer

A QTIP trust qualifies for the marital deduction, provides income to the surviving spouse, but allows the first spouse's estate to direct the remainder beneficiaries, typically children.

Question 3

Social Security widow/widower benefits are available as early as what age, provided the survivor does not have a disability?

Accepted Answer

60

Answer

Surviving spouses can claim reduced widow/widower benefits as early as age 60, or age 50 if disabled.

Question 4

A 68-year-old client is still working and covered by her employer's group health plan. How does Medicare coordinate with her employer insurance?

Accepted Answer

The employer plan is primary and Medicare is secondary

Answer

For active employees working for employers with 20 or more employees, the employer group health plan is primary payer and Medicare is secondary.

Question 5

A CFG advisor is creating a retirement income plan using a 'bucketing' strategy. What is the primary purpose of the short-term bucket?

Accepted Answer

To hold 1-3 years of living expenses in liquid, low-risk assets to avoid selling equities in a downturn

Answer

The short-term (liquidity) bucket holds cash or near-cash assets covering 1-3 years of expenses, providing spending money without forcing the sale of volatile long-term investments during market declines.

(CFG) Certified Financial Gerontologist Practice Test

(CFG) Certified Financial Gerontologist Practice Test

CFG Retirement Income & Estate Planning 5