CFTEA

Certificate in Trust: Intermediate (ABA)

CERTIFICATE IN TRUST 2: INTERMEDIATE (ABA) – Course Code A1035SP

Print formatted Certificate in Trust Intermediate Worksheet

The estimated time to complete the 17 required courses is approximately 18 hours.

Ideal for individuals with some field experience who have mastered the concepts introduced in the foundational trust certificate, either online or in-person.  The certificate provides a more sophisticated understanding and further knowledge of the tools available to a fiduciary, covering estate planning, trust administration, investment management concepts and ethical behavior.
For those wishing to earn the CTFA professional designation, the ABA Certificate in Trust: Intermediate satisfies the second of three levels of study required to sit for the exam.

You must complete the following courses:

A Guide to Ethics in Financial Planning
Introduces ethical standards as they apply to assisting the client and the advisors in developing an organized and comprehensive financial plan.  Provides specific courses of action to prevent conflicts of interest and the potential to affect objectivity, and examines compensation arrangements in financial planning that should be fully disclosed to the client.

After completing this course, students will be able to:
• Describe guidelines to avoid conflicts of interest
• Define the role of the financial planner
• Describe the most common compensation arrangements in financial planning

A Guide to Ethics in Tax Law and Tax Planning
Addresses the duties of the fiduciary that is to hold the assets, administer them, and carry out the terms with a duty of loyalty, impartiality, and reasonable care. It also explores the possible conflicts between investments and the prudent investor rule. This course focuses on the avoidance of the unauthorized practices of law by providing guidelines as to what activities are permitted.

After completing this course, students will be able to:
• Describe the duties of the fiduciary
• Describe how the duties of loyalty and impartiality impact the client relationship
• Explain possible conflicts between investments and the prudent investor rule
• Identify activities that constitute the unauthorized practice of law

Account Acceptance and Termination
There is a risk in opening new fiduciary accounts. From review for acceptance (evaluating assets, key language and prior trustee activity) to review for termination, including procedures and best practices, this class will show you how to protect your institution while acting in a fiduciary capacity.

After completing this course, students will be able to:
• Describe the account acceptance process
• Describe account termination considerations

Basic Characteristics of a Trust
Trusts may come in all shapes and sizes and are created for a variety of reasons, but they have common features and benefits. This course will take you through the how and why of creating a
Discretionary Distributions.  Explains typical trust guidance and common discretionary standards to make sound decisions about trust distributions. Covers discretionary distributions from the perspectives of the trust beneficiaries and with a focus on potential tax consequences of discretionary distributions, and presents the proper techniques for documenting the discretionary distribution decision.

After completing this course, students will be able to:
• Describe typical trust guidance for discretionary distributions and common discretionary standards
• Explain how trust beneficiary circumstances and taxes can affect discretionary distribution decisions
• Describe the documentation requirements associated with discretionary distributions

Duties and Powers of the Trustee
Explains the scope of a trustee’s authority. This course describes the duty of loyalty, the duty to preserve trust property, and the duty to keep accounts. It covers how a prudent trustee would delegate authority as a co-trustee. This course illustrates the relationship between the terms of the trust and the trust’s administration. This course explains trust administration during the settlor’s lifetime and following the settlor’s death, and defines

After completing this course, students will be able to:
• Describe a prudent trustee’s duties and behaviors
• Describe a trustee’s administrative duties
• Explain the powers of the trustee during the settlor’s lifetime and after the settlor’s death

Estate Planning to Achieve Client Goals
Explains how to talk to clients about the estate planning process and needed documents for an estate plan and reach client goals. Explores the advantages and techniques associated with donating through annual and lifetime gifts to minimize estate tax.

After completing this course, students will be able to:
• Describe the basics of estate planning to clients
• Explain how the gift tax annual exclusion and lifetime gifts are used in estate planning

Fiduciary Income Tax
Describes different types of taxes that estates and trusts are subject to and how the various entities are taxed. Explains taxation associated with grantor and tax-exempt charitable trusts and describes the general tax rules. Identifies income tax deductions available to individuals, trusts, and estates. Defines trust accounting income and explains distribution deduction for simple and complex trusts and distributable net income (DNI).  Describes the distribution deduction for simple trusts and complex trusts and estates.

After completing this course, students will be able to:
• Identify the types of taxes and how entities are taxed
• Describe the general tax rules and concepts for grantor, tax-exempt charitable, estate, and irrevocable trusts
• Explain how income tax deductions play a key role in tax planning
• Describe the tax treatment of beneficiaries for simple and complex trusts

Fiduciary Law
Explains exercising a power of appointment, future interest in property, and concurrent ownerships. Describes community vs. separate property, estate planning in a community property jurisdiction, and provisions that protect the surviving spouse in common law states. Describes the prudent management of assets investment strategy, criticisms of the Prudent Person Rule, issues of administering investment securities in fiduciary accounts, and the history of the Uniform Principal and Income Act.

After completing this course, students will be able to:
• Describe powers of appointment
• Explain interest in property and the protection under the law
• Identify the characteristics and legal guidelines for community property, common law, and separate property
• Describe the Prudent Person and Prudent Investor rules
• Explain the issues associated with investment securities held in fiduciary accounts
• Explicate allocation of receipts and disbursements between income and principal

Fundamentals of Life Insurance
Analyzes the types of common life insurance and the tax considerations and describes the inventory of life insurance coverage. Explains how to determine the life insurance needs for clients and compare their needs with their current policies.

After completing this course, students will be able to:
• Discuss basic facts about life insurance
• Determine the life insurance needs of a client

How Trusts Are Taxed
This course explains the most basic and fundamental tax rules that apply to most charitable and noncharitable trusts. This course explains how grantor trusts, charitable trusts, and foundations and supporting organizations are taxed. It describes the purpose of distributable net income, and explains the distribution deduction for simple and complex trusts.

After completing this course, students will be able to:
• Describe how non-charitable trusts are taxed
• Describe how charitable trusts are taxed
• Explain the distributable net income concept

Investment Policy
Explains how a basic investment policy statement answers questions about client objectives, return expectations, risk tolerance, time horizon, and portfolio allocation. Explains how investment constraints affect how a portfolio will be constructed and managed, and why they must be identified in the investment policy.

After completing this course, students will be able to:
• Describe investment policies
• Describe common investment constraints

Investment Products
Explains how knowing the investment products found in the equity and debt markets improve the ability to talk to clients about their stock portfolios.  Identifies the characteristics of common stock and preferred stock. Describes the advantages and disadvantages of mutual funds and how to distinguish between open-end funds and closed-end funds.

After completing this course, students will be able to:
• Describe investment products commonly found in the equity market
• Describe investment products commonly found in the debt market
• Describe the characteristics of mutual funds

Stock Selection and Analysis
There is more than one type of stock, just as there is more than one type of analyst. Stock Selection and Analysis will show you the different methods these analysts use, the different types of trades, and the different strategies.

After completing this course, students will be able to:
• Identify the different categories of stock
• Describe fundamental analysis
• Describe technical analysis
• Identify stock trading methods and strategies

Types of Insurance
Describes homeowners insurance, homeowners liability, and homeowners medical payment coverages. Covers floaters and endorsements and describes the purpose of umbrella policies, and the features of comprehensive personal liability policies. Explains who needs business liability policies, and describes the elements of professional liability policies. Explores the options available in employer-provided medical insurance, and explains the government-provided medical insurance plans. Explains how to identify individuals that should consider critical illness insurance and
describes providers of disability income insurance coverage, and explains the different policy riders. Discusses the features of long-term care insurance and tax-qualified LTC policies and describes factors that are included when assessing risk in property insurance needs and liability, medical, and disability insurance coverages.

After completing this course, students will be able to:
• Identify the features of homeowners insurance
• Explain the various types of liability insurance
• Describe the medical insurance options available to clients
• Identify the providers and optional riders offered with disability income insurance
• Explain long term care insurance and the policies recommended
• Assess the type and amount of insurance necessary to manage client risk

Understanding Transfer Tax
Identifies the types of transactions that may be considered gifts and describes the conditions that cause gift taxation. Describes the requirements that must be met for a disclaimer to qualify for exemption from federal gift tax, and the exclusions available to clients to minimize or avoid taxes.  Explains the impact of the unified tax system and how to calculate the amount subject to the gift tax.

After completing this course, students will be able to:
• Define what a gift is for tax purposes
• Describe the benefits of disclaimers and exclusions for your clients
• Explain your role in meeting client expectations
• Describe the methods and costs of transferring property
• Identify gift tax considerations

2019.07

ABA / CFT

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