Level 1 - Knowledge of Topics Relevant to Retirement Planning and
Special Issues of Senior Citizens (Recommended 16 CPE hours total)

DEMOGRAPHICS & OVERVIEW (Recommended ½ to 1 hour)

Characteristics & expectations of the Baby Boomer generation
Typical income & expense considerations for American retirees
Special income tax benefits for senior citizens
Tax dilemmas for retirees
Sources of information

SOCIAL SECURITY (recommended 1 1/2 to 3 hours)

Retirement benefits – eligibility, options, processes
Strategies for maximizing benefits prior to retirement
Using the optional method for computing SE tax
Strategies for maximizing benefits by choosing retirement age
Early retirement and the associated limitations and reductions
Penalties for earned income after retirement
Delayed retirement credits
Strategies for minimizing taxes on Social Security retirement benefits

Disability benefits – eligibility, options, processes
Strategies to minimize taxes on disability benefits

Survivors’ benefits – eligibility, options, processes

Special situations:
Rules for divorced and widowed spouses
Death of a beneficiary

Using the Social Security Administration website

MEDICARE (recommended 1 1/2 to 2 hours)

Medicare Part A, hospital insurance – eligibility, options, & processes
Medicare Part B, medical insurance – eligibility, options, & processes
Medicare Part D, prescription drug coverage – eligibility, options, & processes
Advantages and disadvantages to consider when choosing Medicare options
Using the Medicare Handbook published by the Social Security Administration

MEDICAID (recommended 1 to 2 hours)

Qualifying for Medicaid benefits –
Federal regulations
State regulations -
Income cap states
Spend-down states

Pre-application planning opportunities -
Reducing assets by gifting
Medicaid trusts (basic information)
Pitfalls to avoid

Determining eligibility for Medicaid benefits -
Exempt assets
Non-exempt assets
Income limits
Protections for the non-institutionalized spouse

Medicaid estate recovery

VETERAN’S BENEFITS – (recommended ½ to 1 hour)

Benefits available to veterans
How eligibility for benefits is determined
Special tax benefits for veterans
Sources of information

HEALTH CARE & LONG-TERM CARE OPTIONS (recommended 1 to 2 hours)

Medigap insurance & comparison of Medigap standard plans
Health Savings Accounts (HSAs) & Medical Savings Accounts (MSAs)

Long-term care insurance –
Making the decision to buy long term care insurance – cost vs. benefit
Eligibility for long term care benefits (ADLs, etc)

Home health care

Income tax deductions for medical expenses & long-term care

Alternative funding sources for medical costs -
Reverse mortgages
Accelerated death benefits from life insurance policies
Annuitization of life insurance
Borrowing against life insurance

Self-employment tax issues -
Tools for reducing self-employment taxes
Tools for increasing self-employment taxes
Advantages & disadvantages for minimizing or maximizing SE taxes

Choosing the most advantageous business entities (basic comparisons) –
When the goal is to maximize personal retirement income
When the goal is to streamline a business succession plan
When the goal is to minimize estate taxes
When the goal is to share income with family members

Developing a plan for business succession (basic knowledge)
Using life insurance as part of a succession plan

RETIREMENT PLANS (recommended 3 to 4 ½ hours)

Choosing a retirement plan –
Types of plans available and their advantages & disadvantages
Special considerations in choosing a plan when close to retirement age
Beneficiary designations for the retirement plan

Funding the retirement plan -
Estimating annual income needed in retirement
Identifying sources and projecting annual retirement income
Calculating the estimated annual contribution needed to provide adequate
retirement income
Calculating the maximum contribution allowed

Distributions from a retirement plan -
Premature distributions
Applicable penalties
Exceptions to the penalties
Taxation of periodic payments when taking early retirement
Lump-sum distributions
Advantages & disadvantages of choosing a lump-sum option
Rollovers from one plan to another – rules & restrictions
Minimum required distribution rules -
Calculating the required distribution
Required beginning date

PERSONAL RESIDENCE ISSUES (recommended 1 to 1 ½ hours)
Maximizing the home sale income tax exclusion
Protecting the home for the benefit of a surviving or non-institutionalized spouse
The vacation home
Sale of a mixed-use residence
Tax treatment of converted property
Reverse mortgages

Level 2 - Knowledge of Tax Planning and Tax Preparation for Decedents, Estates, and Trusts (recommended 16 CPE hours total)

DECEDENT’S FINAL TAX RETURN (recommended 2 hours)
Responsibility for the final return
Filing status and exemptions for the final return
Tax period for the final return
Income on the final return
Deductions on the final return
Dealing with incorrect information returns for the year of death
Income and deductions in respect of a decedent
Allocating income and deductions between the decedent & the estate
Filing appropriate elections and waivers

BASICS OF ESTATES, TRUSTS, AND FIDUCIARY ACCOUNTING (recommended 1 hour)
The governing instruments – wills, trusts, & state law
Appointment and duties of the Personal Representative or trustee
The probate process (general information)
Types of trusts (basic information needed to file form 1041)
Understanding revocable vs. irrevocable trusts
Grantor trusts
Intervivos vs. testamentary trusts
Glossary of terms used in trust administration

INCOME TAXATION OF ESTATES & TRUSTS (Form 1041) (recommended 6 hours)

Tax filing requirements of estates & trusts
Tax periods for estates & trusts
Flow through characteristics of estates and trusts
Reportable income of estates & trusts
Allocation of income between decedent, estate, & beneficiary
Treatment of capital gains & losses
Rules for holding period and basis of assets
Deductions of estates & trusts
Allocations of deductions to classes of income
Charitable contributions for estates & trusts
Alternative minimum tax, Form 1041
Estimated taxes; allocating estimated taxes to beneficiaries
Distributable net income and income distribution deduction
Allocations of net income to beneficiaries
Tax return elections of estates & trusts
Income in respect of a decedent
Preparation of Form 1041

FEDERAL GIFT TAX (Form 709) (recommended 1 hour)

Filing requirements
Exemptions & exceptions for gift tax
Gift-splitting by married persons
Gifts for educational and medical expenses
Gifts to minors
Gift loans
Preparation of Form 709

FEDERAL ESTATE TAX RETURNS (Form 706) (recommended 6 hours)

Unified transfer tax concepts
Filing requirements
Property includible in the estate
Exempt or excludible assets
Valuation of the estate
Alternative valuation dates
Valuation discounts
Special use valuations
Transfers during decedent’s life
Deductions from the gross estate
Generation skipping transfer tax
Unified credit and the state death tax credit
Elections & waivers available on the estate tax return
Disclaimer of inheritances by beneficiaries
The fiduciary relationship
Preparation of Form 706

Level 3 - Serving Aging Clients – Applying your Knowledge & Skills in Real-Life Situations (recommended 8 to 12 hours CPE total)

ETHICS & PROFESSIONALISM IN SERVING AGING CLIENTS (recommended 2 to 3 hours)

Engagement considerations in serving an aging client -
Determining who is the client
Dealing with client family members & beneficiaries
Dealing with clients with diminished capacity
Protecting the client with diminished capacity
Identifying & dealing with potential conflicts of interest
Confidentiality issues

Limiting your exposure to professional liability -
Engagement letters
Disclosures

BASIC ESTATE PLANNING CONSIDERATIONS & PROCEDURES (recommended 1 to 2 hours)

Gathering information & interviewing the client
Utilizing the marital deduction
Utilizing the gift tax annual exclusion
Utilizing the gift tax exclusion for education and medical payments
Gift-splitting
Transfers made within three years of death
Gifts in anticipation of death
Powers of appointment
Community property
The charitable deduction
Divorce and re-marriage

UNDERSTANDING THE TOOLS OF ESTATE PLANNING (recommended 2 to 4 hours)

The will
The unified credit shelter by-pass trust
The marital deduction QTIP trust
Living trusts
Gift giving and the Crummey power
Life insurance planning strategies
Disclaimers
Valuation discounts
Utilizing business entities in estate planning
Installment sales and self-canceling installment notes
Sale to intentionally defective grantor trust
Private annuities
Grantor retained interest trusts – GRITs, GRATs, & GRUTS
Qualified personal residence trust
Buy-sell agreements
Special use valuations
Special needs trusts
Dynasty trusts
Health care directives

RETIREMENT DISTRIBUTION PLANNING (recommended 1 to 2 hours)

Roth IRA conversions
Charitable donation of IRA distribution
Avoiding penalties for early withdrawal upon early retirement
Withdrawal options for surviving spouses
QTIP and QDOT trusts as plan beneficiaries
Withdrawal options for non-spouse beneficiaries
Trusts as plan beneficiaries
Contingent beneficiaries
Complexities of changing beneficiaries
Distribution options for inherited IRAs

ADVISING YOUR CLIENTS OF AVOIDABLE MISTAKES (recommended 1 to 2 hours)

Choosing the wrong options when leaving a company
Choosing the wrong beneficiary designations
Choosing the wrong distribution option for a retirement plan
Failing to take the minimum required distribution from an IRA
Self written wills and trusts
Writing family members out of a will
Outliving the money