Certified Financial Planner Board of Standards, Inc

CERTIFIED FINANCIAL PLANNER BOARD OF STANDARDS, INC.

TOPIC LIST FOR CFP@CERTIFICATION EXAMINATION

The following topics, based on the 2004 Job Analysis Study, are the basis for the CFPmCertificationExaminations. Each exam question will be linked to one of the following topics, in the approximate percentages indicated following the general headings. Questions will pertain to all levels in Bloom's taxonomy with an emphasis on the higher cognitive levels. Questions often will be asked in the context of the financial planning process and presented in an integrative format.

In addition to being used for the CFP" Certification Examination, this list indicates topic coverage requirements to fulfill the pre-certification educational requirement. Continuing education (CE) programs and materials that address these topics will be eligible for CFP Board CE credit.

(References to sections (3) in this list refer to sections of the Internal Revenue Code)

First Test Date: November 2006

GENERAL PRINCIPLES OF C) Principle 3 - Competence B. Secured vs. unsecured debt d) Principle 4 - Fairness C. Buy vs. leaselrent FINANCIAL PLANNING ( 11 %) e) Principle 5 - Confidentiality D. Mortgage financing 1. Financial planning process f) Principle 6 - Professionalism 1) Conventional vs. adjustable- A. Purpose, benefits, and components g) Principle 7 - Diligence rate mortgage (ARM) B. Steps 6) Rules 2) Home equity loan and line 1) Establishing client-planner B) Disciplinary Rules and Procedures of credit relationships 3) Refinancing cost-benefit 2) Gathering client data and 3. CFP Board's Financial Planning analysis determining goals and Practice Standards 4) Reverse mortgage expectations A) Purpose and applicability 3) Determining the client's B) Content of each series (use most 7. Function, purpose, and regulation financial status by analyzing current Practice Standards, as posted of financial institutions and evaluating general financial on CFP Board's Web site at A. Banks status, special needs, insurance and www.CFP.net) B. Credit unions risk management, investments, C. Enforcement through Disciplinary C. Brokerage companies taxation, employee benefits, Rules and Procedures D. Insurance companies retirement, andlor estate planning E. Mutual fund companies 4) Developing and presenting the 4. Financial statements F. Trust companies financial plan A. Personal 5) Implementing the financial plan 1) Statement of financial position 8. Education planning 6) Monitoring the financial plan 2) Statement of cash flow A. Funding C. Responsibilities B. Business 1) Needs analysis 1) Financial planner 1) Balance sheet 2) Tax crediWadjustmenW 2) Client 2) Income statement deductions 3) Other advisors 3) Statement of cash flows 3) Funding strategies 4) Pro forma statements 4) Ownership of assets 2. CFP Board's Code of Ethics and 5) Vehicles Professional Responsibility and 5. Cash flow management a) Qualified tuition Disciplinary Rules and Procedures A. Budgeting programs (5529 plans) A. Code ofEthics and Professional B. Emergency fund planning b) Coverdell Education Responsibility C. Debt management ratios Savings Accounts 1) Preamble and applicability 1) Consumer debt C) Uniform Transfers to 2) Composition and scope 2) Housing costs Minors Act (UTMA) and 3) Compliance 3) Total debt Uniform Gifts to Minors 4) Terminology D. Savings strategies Act (UGMA) accounts 5) Principles d) Savings bonds a) Principle 1 - Integrity 6. Financing strategies B. Financial aid b) Principle 2 - Objectivity A. Long-term vs. short-term debt

CertlRed Financial Planner Board of Standards Inc. owns these certification marks In the US.. whlrh It awards to individuals who succeufully complete CFP Board's initid and ongoitq certification requirements 9. Financial planning for special D. Response to risk C. Elimination period circumstances 1) Risk control D. Benefit amount A. Divorce a) Risk avoidance E. Provisions B. Disability b) Risk diversification F. Taxation of premiums and benefits C. Terminal illness C) Risk reduction D. Non-traditional families 2) Risk financing 20. Long-term care insurance (individual) E. Job change and job loss a) Risk retention A. Eligibility F. Dependents with special needs b) Risk transfer B. Services covered G. Monetary windfalls E. Legal aspects of insurance C. Medicare limitations 1) Principle of indemnity D. Benefit period 10. Economic concepts 2) Insurable interest E. Elimination period A. Supply and demand 3) Contract requirements F. Benefit amount B. Fiscal policy 4) Contract characteristics G. Provisions C. Monetary policy 5) Policy ownership H. Taxation of premiums and benefits D. Economic indicators 6) Designation of beneficiary E. Business cycles 21. Life insurance (individual) F. Inflation, deflation, and stagflation 16. Analysis and evaluation of risk exposures A. Concepts and personal uses G. Yield curve A. Personal B. Policy types 1) Death C. Contractual provisions 11. Time value of money concepts and 2) Disability D. Dividend options calculations 3) Poor health E. Nonforfeiture options A. Present value 4) Unemployment F. Settlement options B. Future value 5) Superannuation G. Illustrations C. Ordinary annuity and annuity due B. Property H. Policy replacement D. Net present value (NPV) 1) Real I. Viatica1 and life settlements E. Internal rate of return (IRR) 2) Personal F. Uneven cash flows 3) Auto 22. Income taxation of life insurance G. Serial payments C. Liability A. Dividends 1) Negligence B. Withdrawals and loans 12. Financial services regulations and 2) Intentional torts C. Death benefits requirements 3) Strict liability D. Modified endowment contracts A. Registration and licensing D. Business-related (MEG) B. Reporting E. Transfer-for-value C. Compliance 17. Property, casualty and liability insurance F. 51035 exchanges D. State securities and insurance laws A. Individual 1) Homeowners insurance 23. Business uses of insurance 13. Business law 2) Auto insurance A. Buy-sell agreements A. Contracts 3) Umbrella liability insurance B. Key employee life insurance B. Agency B. Business C. Split-dollar life insurance C. Fiduciary liability 1) Commercial property insurance D. Business overhead expense 2) Commercial liability insurance insurance 14. Consumer protection laws a) Auto liability A. Bankruptcy b) Umbrella liability 24. lnsurance needs analysis B. Fair credit reporting laws C) Professional liability A. Life insurance C. Privacy policies d) Directors and officers liability B. Disability income insurance D. Identity theft protection e) Workers' compensation and C. Long-term care insurance employers liability D. Health insurance E. Property insurance INSURANCE PLANNING AND 18. Health insurance and health care cost F. Liability insurance management (individual) RISK MANAGEMENT (14%) A. Hospital, surgical, and physicians' 25. Insurance policy and company expense insurance selection ,. Principles of risk and insurance B. Major medical insurance and A. Purpose of coverage A. Definitions calculation of benefits B. Duration of coverage B. Concepts C. Continuance and portability C. Participating or non-participating 1) Peril D. Medicare D. Cost-benefit analysis 2) Hazard E. Taxation of premiums and benefits E. Company selection 3) Law of large numbers 1) Industry ratings 4) Adverse selection 2) Underwriting 5) Insurable risks 19. Disability income insurance (individual) 6) Self-insurance A. Definitions of disability C. Risk management process B. Benefit period

Certlfied Financial Planner Board of Standards In<. owns these stock options 2) Salary continuation plans A. Types A. Basic provisions 3) Rabbi trusts B. Uses 1) Company restrictions 4) Secular trusts C. Taxation 2) Transferability C. lncome tax implications 3) Exercise price 1) Constructive receipt 4) Vesting 2) Substantial risk of forfeiture EMPLOYEE BENEFITS 5) Expiration 3) Economic benefit doctrine 6) Cashless exercise D. Funding methods PLANNING (8%) B. Incentive stock options (ISOs) E. Strategies 1) lncome tax implications 27. Group life insurance (regular, AMT, basis) A. Types and basic provisions a) Upon grant INVESTMENT PLANNING 1) Group term b)Upon exercise 2) Group permanent c)Upon sale (19%) 3) Dependent coverage 2) Holding period requirements B. lncome tax implications 3) Disqualifying dispositions 34. Characteristics, uses and taxation C. Employee benefit analysis and 4) Planning opportunities and of investment vehicles application strategies A. Cash and equivalents D. Conversion analysis C. Non-qualified stock options 1) Certificates of deposit E. Carve-out plans (NSOs) 2) Money market funds 1) lncome tax implications 3) Treasury bills 28. Group disability insurance (regular, AMT, basis) 4) Commercial paper A. Types and basic provisions a) Upon grant 5) Banker's acceptances 1) Short-term coverage b) Upon exercise 6) Eurodollars 2) Long-term coverage c) Upon sale B. lndividual bonds B. Definitions of disability 2) Gifting opportunities 1) U.S. Government bonds and C. lncome tax implications a) Unvestedhested agency securities D. Employee benefit analysis and b) Exercisedlunexercised a) Treasury notes and bonds application c) Gift tax valuation b) Treasury STRIPS E. Integration with other income d) Payment of gift tax 3) Planning opportunities and c) Treasury inflation- 29. Group medical insurance strategies protection securities A. Types and basic provisions 4) Employee benefits analysis and (TIPS) 1) Traditional indemnity a~~lication. . d) Series EE, HH, and I bonds 2) Managed care plans D. Planning strategies for employees e) Mortgage-backed a) Preferred provider with both incentive stock o~tions securities organization (PPO) and non-qualified stock options 2) Zero-coupon bonds b) Health maintenance E. Election to include in gross income 3) Municipal bonds organization (HMO) in the year of transfer (§83(b) a) General obligation C) Point-of-service(POS) election) b) Revenue B. lncome tax implications 4) Corporate bonds C. Employee benefit analysis and 32. Stock plans a) Mortgage bond application A. Types and basic provisions b) Debenture D. COBRAIHIPAA provisions 1) Restricted stock c) Investment grade E. Continuation 2) Phantom stock d) High-yield F. Savings accounts 3) Stock appreciation rights e) Convertible 1) Health savings account (HSA) (SARs) f) Callable 2) Archer medical savings account 4) Employee stock purchase plan 5) Foreign bonds (MSA) (ESPP) C. Promissory notes 3) Health reimbursement B. lncome tax implications D. lndividual stocks arrangement (HRA) C. Employee benefit analysis and 1) Common application 2) Preferred 30. Other employee benefits D. Election to include in gross 3) American depositary receipts A. 9125 cafeteria plans and flexible income in the year of transfer (ADRs) spending accounts (FSAs) (§83(b) election) E. Pooled and managed B. Fringe benefits investments C. Voluntary employees' beneficiary 33. Non-qualified deferred 1) Exchange-traded funds association (VEBA) compensation (ETFs) D. Prepaid legal services A. Basic provisions and differences 2) Unit investment trusts E. Group long-term care insurance from qualified plans 3) Mutual funds F. Dental insurance B. Types of plans and applications 4) Closed-end investment G. Vision insurance 1) Salary reduction plans companies

Cenlfled Flnanclal Planner Board of Standards Inc. owns ~I~esecenlflcation marks In the U.S.. which it awards lo indwidwh who succeuhlly complete CFP Board's initial end onping certiflution requiremmts. 5) Index securities B. Geometric average vs. arithmetic 3) Wash sale rule 6) Hedge funds average return 4) Qualified dividends 7) Limited partnerships C. Time-weighted vs. dollar- 5) Tax-free income 8) Privately managed accounts weighted return G. Performance measures 9) Separately managed D. Real (inflation-adjusted) vs. 1) Sharpe ratio accounts nominal return 2) Treynor ratio F. Guaranteed investrnent E. Total return 3) Jensen ratio contracts (GICs) F. Risk-adjusted return 4) Information ratio G. Real Estate G. Holding period return 1) Investor-managed H. Internal rate of return (IRR) 41. lnvestment strategies 2) Real estate investment trusts I. Yield-to-maturity A. Market timing (REITs) J. Yield-to-call B. Passive investing (indexing) 3) Real estate limited K. Current yield C. Buy and hold partnerships (RELPs) L. Taxable equivalent yield (TEY) D. Portfolio immunization 4) Real estate mortgage E. Swaps and collars investment conduits (REMICs) 38. Bond and stock valuation concepts F. Formula investing H. Alternative investments A. Bond duration and convexity 1) Dollar cost averaging 1) Derivatives B. Capitalized earnings 2) Dividend reinvestment plans a) Puts C. Dividend growth models (DRIPS) b) Calls D. Ratio analysis 3) Bond ladders, bullets, and c) Long-term Equity 1) Pricelearnings barbells Anticipation Securities 2) Pricelfree cash flow G. Use of leverage (margin) (LEAPS? 3) Pricelsales H. Short selling d) Futures 4) Pricelearnings + growth (PEG) I. Hedging and option strategies e) Warrants and rights E. Book value 2) Tangible assets 42. Asset allocation and portfolio a) Collectibles 39. lnvestment theory diversification b) Natural resources A. Modern portfolio theory (MPT) A. Strategic asset allocation c) Precious metals 1) Capital market line (CML) 1) Application of client lifecycle a) Mean-variance optimization analysis 35. Types of investrnent risk b) Efficient frontier 2) Client risk tolerance A. Systematidmarket/ 2) Security market line (SML) measurement and nondiversifiable B. Efficient market hypothesis (EMH) application B. Purchasing power 1) Strong form 3) Asset class definition and C. Interest rate 2) Semi-strong form correlation D. Unsystematidnonmarkev 3) Weak form B. Rebalancing diversifiable 4) Anomalies C. Tactical asset allocation E. Business C. Behavioral finance D. Control of volatility F. Financial E. Strategies for dealing with G. Liquidity and marketability concentrated portfolios H. Reinvestment 40. Portfolio development and analysis I. Political (sovereign) A. Fundamental analysis 43. Asset pricing models J. Exchange rate 1) Top-down analysis A. Capital asset pricing model K. Tax 2) Bottom-up analysis (CAPMI L. lnvestment manager 3) Ratio analysis B. Arbitrage pricing theory (APT) a) Liquidity ratios C. Black-Scholes option valuation 36. Quantitative investment concepts b) Activity ratios model A. Distribution of returns C) Profitability ratios D. Binomial option pricing 1) Normal distribution d) Debt ratios 2) Lognormal distribution B. Technical analysis 3) Skewness 1) Charting INCOME TAX PLANNJNG 4) Kurtosis 2) Sentiment indicators B. Correlation coefficient 3) Flow of funds indicators (14%) C. Coefficient of determination (R2) 4) Market structure indicators D. Coefficient of variation C. lnvestment policy statements 44. Income tax law fundamentals E. Standard deviation D. Appropriate benchmarks A. Types of authority F. Beta E. Probability analysis, including 1) Primary G. Covariance Monte Carlo 2) Secondary H. Semivariance F. Tax efficiency B. Research sources 1) Turnover 37. Measures of investment returns 2) Timing of capital gains and A. Simple vs. compound return losses

Certified Flnanclal Planner lwrd of Standards Inc. owns these ceRIRcat10n marks In the US.. which It awards to individuals who succeuhlly complrtr CFP Boar#s inltidl and ongoing ccniflmtion rqutremmtr 45. Tax compliance 49. lncome taxation of trusts and D. Credit: creation, usage, and A. Filing requirements estates limitations B. Audits A. General issues E. Application to businesses and C. Penalties 1) Filing requirements trusts 2) Deadlines F. Planning strategies 46. lncome tax fundamentals and 3) Choice of taxable year calculations 4) Tax treatment of distributions 55. Tax reductiodrnanagement A. Filing status to beneficiaries techniques B. Gross income 5) Rate structure A. Tax credits 1) Inclusions B. GrantorlNongrantor trusts B. Accelerated deductions 2) Exclusions C. SimplelComplex trusts C. Deferral of income 3) Imputed income D. Revocablellrrevocabletrusts D. Intra-family transfers C. Adjustments E. Trust income D. Standardlltemized deductions 1) Trust accounting income 56. Passive activity and at-risk rules 1) Types 2) Trust taxable income A. Definitions 2) Limitations 3) Distributable net income (DNI) B. Computations E. Personal and dependency F. Estate income tax C. Treatment of disallowed losses exemptions D. Disposition of passive activities F. Taxable income 50. Basis E. Real estate exceptions G. Tax liability A. Original basis 1) Rate schedule B. Adjusted basis 57. Tax implications of special 2) Kiddie tax C. Amortization and accretion circumstances 3) Self-employment tax D. Basis of property received by gift A. Marriedhidowed H. Tax credits and in nontaxable transactions 1) Filing status I. Payment of tax E. Basis of inherited property 2) Children 1) Withholding (community and non-community 3) Community and non- 2) Estimated payments property) community property B. Divorce 47. Tax accounting 5 1. Depreciatiodcost-recovery concepts 1) Alimony A. Accounting periods A. Modified Accelerated Cost 2) Child support B Accounting methods Recovery System (MACRS) 3) Property division 1) Cash receipts and B. Expensing policy disbursements C. 5179 deduction 58. Charitable contributions and 2) Accrual method D. Amortization deductions 3) Hybrid method E. Depletion A. Qualified entities 4) Change in accounting method 1) Public charities C. Long-term contracts 52. Tax consequences of like-kind 2) Private charities D. Installment sales exchanges B. Deduction limitations E. Inventory valuation and flow A. Reporting requirements C. Carryover periods methods B. Qualifying transactions D. Appreciated property F. Net operating losses C. Liabilities E. Non-deductible contributions D. Boot F. Appraisals 48. Characteristics and income taxation E. Related party transactions G. Substantiation requirements of business entities H. Charitable contributions by A. Entity types 53. Tax consequences of the disposition business entities 1) Sole proprietorship of property 2) Partnerships A. Capital assets (51221) 3) Limited liability company (LLC) B. Holding period RETIREMENT PLANNING 4) Corporations C. Sale of residence 5) Trust D. Depreciation recapture (19%) 6) Association E. Related parties B. Taxation at entity and owner level F. Wash sales 59. Retirement needs analysis 1) Formation G. Bargain sales A. Assumptions for retirement 2) Flow through of income and H. Section 1244 stock (small business planning losses stock election) 1) Inflation 3) Special taxes I. Installment sales 2) Retirement period and life 4) Distributions J. Involuntary conversions expectancy 5) Dissolution 3) Lifestyle 6) Disposition 54. Alternative minimum tax (AMT) 4) Total return A. Mechanics B. lncome sources B. Preferences and adjustments C. Financial needs C. Exclusion items vs. deferral items 1) Living costs

Certified Financial Planner B~ardD( Standards Inc. owns these certification marks In the U.S.. which it awards lo individuals who rucceutully wplete CFP Board's initial and ~ngoingcertification requirements. 2) Charitable and beneficiary B. Integration with Social B. Time horizon gifting objectives Securityldisparity limits C. Diversification 3) Medical costs, including 1) Defined benefit plans D. Fiduciary considerations long-term care needs 2) Defined contribution plans E. Unrelated business taxable income analysis C. Factors affecting contributions or (UBTI) 4) Other (trust and foundation benefits F. Life insurance funding, education funding, 1) Deduction limit (5404(c)) G. Appropriate assets for tax- etc.) 2) Defined contribution limits advantaged vs. taxable D. Straight-line returns vs. 3) Defined benefit limit accounts probability analysis 4) Annual compensation limit E. Pure annuity vs. capital 5) Definition of compensation 67. Distribution rules, alternatives, preservation 6) Multiple plans and taxation F. Alternatives to compensate for 7) Special rules for self-employed A. Premature distributions projected cash-flow shortfalls (non-corporations) 1) Penalties D. Top-heavy plans 2) Exceptions to penalties 60. Social Security (Old Age, Survivor, 1) Definition 3) Substantially equal and Disability Insurance, OASDI) 2) Key employee payments (572(t)) A. Paying into the system 3) Vesting B. Election of distribution options B. Eligibility and benefit 4) Effects on contributions or 1) Lump sum distributions 1) Retirement benefits 2) Annuity options 2) Disability E. Loans from qualified plans 3) Rollover 3) Survivor 4) Direct transfer 4) Family limitations 63. Other tax-advantaged retirement C. Required minimum C. How benefits are calculated plans distributions D. Working after retirement A. Types and basic provisions 1) Rules E. Taxation of benefits 1) Traditional IRA 2) Calculations 2) Roth IRA, including conversion 3) Penalties 61. Types of retirement plans analysis D. Beneficiary considerations/ A. Characteristics 3) SEP Stretch lRAs 1) Qualified plans 4) SIMPLE E. Qualified domestic relations 2) Non-qualified plans 5) 5403(b) plans order (QDRO) B. Types and basic provisions of 6) 5457 plans F. Taxation of distributions qualified plans 7) Keogh (HR-10) plans 1) Tax management techniques 1) Defined contribution 2) Net unrealized appreciation a) Money purchase 64. Regulatory considerations (NUN b) Target benefit A. Em~loveeRetirement Income C) Profit sharing SecuriG Act (ERISA) 1) 401(k) plan B. Department of Labor (DOL) ESTATE PLANNING ( 15%) 2) Safe harbor 401(k) plan regulations 3) Age-based plan C. Fiduciary liability issues 68. Characteristics and consequences 4) Stock bonus plan D. Prohibited transactions of property titling 5) Employee stock E. Reporting requirements A. Community property vs. non- ownership plan (ESOP) community property 6) New comparability plan 65. Key factors affecting plan selection 6. Sole ownership 7) Thrift plan for businesses C. Joint tenancy with right of 2) Defined benefit A. Owner's personal objectives survivorship (JTWROS) a) Traditional 1) Tax considerations D. Tenancy by the entirety b) Cash balance 2) Capital needs at retirement E. Tenancy in common c) 412(i) plan 3) Capital needs at death F. Trust ownership B. Business' objectives 62. Qualified plan rules and options 1) Tax considerations 69. Methods of property transfer at A. Nondiscrimination and eligibility 2) Administrative cost death requirements 3) Cash flow situation and A. Transfers through the probate 1) Age and service requirements outlook process 2) Coverage requirements 4) Employee demographics 1) Testamentary distribution 3) Minimum ~artici~ation 5) Com~arisonof defined 2) Intestate succession 4) Highly compens&ed employee conGibution and defined 3) Advantages and (HCE) benefit plan alternatives disadvantages of probate 5) permitted vesting schedules 4) Assets subject to probate 6) ADPIACP testing 66. Investment considerations for estate 7) Controlled group retirement plans 5) Probate avoidance strategies A. Suitability

Certlfied Financial Planner Board of Standards Inc. owns these certification marks in the U.5.. whlch it awards to individuak dosuccessfully complete CFP Board's initial and ongoing certification nquiremmts 6) Ancillary probate G. Special needs trust 6. Grantor retained unitrusts administration (GRUTs) 6. Transfers by operation of law 74. Estate tax compliance and tax C. Qualified personal residence C. Transfers through trusts calculation trusts (QPRTs or House-GRITS) D. Transfers by contract A. Estate tax filing requirements D. Valuation of qualified interests 8. The gross estate 70. Estate planning documents 1) Inclusions 79. Charitable transfers A. Wills 2) Exclusions A. Outright gifts 1) Legal requirements C. Deductions 6. Charitable remainder trusts 2) Types of wills D. Adjusted gross estate 1) Unitrusts (CRUTs) 3) Modifying or revoking a will E. Deductions from the adjusted 2) Annuity trusts (CRATs) 4) Avoiding will contests gross estate C. Charitable lead trusts B. Powers of Attorney F. Taxable estate 1) Unitrusts (CLUTs) C. Trusts G. Adjusted taxable gifts 2) Annuity trusts (CLATs) D. Marital property agreements H. Tentative tax base D. Charitable gift annuities E. Buy-sell agreements I. Tentative tax calculation E. Pooled income funds J. Credits F. Private foundations 71. Gifting strategies 1) Gift tax payable G. Donor advised funds A. Inter-vivos gifting 2) Applicable credit amount H. Estate and gift taxation 3) Prior transfer credit B. Gift-giving techniques and 80. Use of life insurance in estate strateaies 75. Sources for estate liquidity planning C. ~~~ropriategift property A. Sale of assets A. Incidents of ownership D. Strategies for closely-held 8. Life insurance B. Ownership and beneficiary business owners C. Loan considerations E. Gifts of present and future 76. Powers of appointment C. Irrevocable life insurance trust interests A. Use and purpose (ILIT) F. Gifts to non-citizen spouses 8. General and special (limited) D. Estate and gift taxation G. Tax implications powers 1) lncome 1) 5-and-5 power 81. Valuation issues 2) Gift 2) Crummey powers A. Estate freezes 3) Estate 3) Distributions for an 1) Corporate and partnership 4) Generation-skipping transfer ascertainable standard recapitalizations (92701)

tax (GSm 4) Lapse of power 2) ~ransfersin trust ~- C. Tax implications B. Valuation discounts for 72. Gift tax compliance and tax business interests calculation 77. Types, features, and taxation of 1) Minority discounts A. Gift tax filing requirements trusts 2) Marketability discounts B. Calculation A. Classification 3) Blockage discounts 1) Annual exclusion 1) Simple and complex 4) Key person discounts 2) Applicable credit amount 2) Revocable and irrevocable C. Valuation techniques and the 3) Gift splitting 3) Inter-vivos and testamentary federal gross estate 4) Prior taxable gifts B. Types and basic provisions 5) Education and medical 1) Totten trust 82. Marital deduction exclusions 2) Spendthrift trust A. Reauirements 6) Marital and charitable 3) Bypass trust B. ~ualifyin~transfers deductions 4) Marital trust C. Terminable interest rule and 7) Tax liability 5) Qualified terminable interest exceptions property (QTIP) trust D. Qualified domestic trust 73. Incapacity planning 6) Pour-over trust (QDOT) A. Definition of incapacity 7) §2503(b) trust B. Powers of attorney 8) §2503(c) trust 83. Deferral and minimization of 1) For health care decisions 9) Sprinkling provision estate taxes 2) For asset management C. Trust beneficiaries: lncome and A. Exclusion of property from the 3) Durable feature remainder gross estate 4) Springing power D. Rule against perpetuities 8. Lifetime gifting strategies 5) General or limited powers E. Estate and gift taxation C. Marital deduction and bypass C. Advance medical directives (e.g. trust planning living wills) 78. Qualified interest trusts D. Inter-vivos and testamentary D. Guardianship and consewatorship A. Grantor retained annuity trusts charitable gifts E. Revocable living trust (GRATs) F. Medicaid planning

Certified Financial Planner Board of Standards Inc. owns these certification marks In the U.S.. whlch It awards m individuals who succeufully complete CFP Board's initial md ongoing certification requiremmts 84. Intra-family and other business 85) Generation-skipping transfer tax 87. lncome in respect of a decedent transfer techniques (GSTT) (IRD) A. Characteristics A. Identify transfers subject to the A. Assets qualifying as IRD B. Techniques GSl-r B. Calculation for IRD deduction 1) Buy-sell agreement 1) Direct skips C. Income tax treatment 2) Installment note 2) Taxable distributions 3) Self-canceling installment note 3) Taxable terminations 88. Postmortem estate planning (SCIN) B. Exemptions and exclusions from techniques 4) Private annuity the GST A. Alternate valuation date 5) Transfers in trust 1) The GSl-r exemption B. Qualified disclaimer 6) Intra-family loan 2) Qualifying annual exclusion C. Deferral of estate tax (56166) 7) Bargain sale gifts and direct transfers D. Corporate stock redemption 8) Gift or sale leaseback (5303) 9) Intentionally defective grantor 86. Fiduciaries E. Special use valuation (52032A) trust A. Types of fiduciaries 10) Family limited partnership 1) Executor/Personal 89. Estate planning for non-traditional (FLP) or limited liability representative relationships company (LLC) 2) Trustee A. Children of another relationship C. Federal income, gift, estate, and 3) Guardian B. Cohabitation generation-skipping transfer tax B. Duties of fiduciaries C. Adoption implications C. Breach of fiduciary duties D. Same-sex relationships

ADDENDUM

The following topics are an addendum to the Topic List for CFP Certification Examination. Although individuals taking the CFPOCertification Examination will not be tested directly over these topics, CFP Board registered programs are strongly encouraged to teach them in their curricula) Continuing education (CE) programs and materials that address these topics will be eligible for CFP Board CE credit.

1. Client and planner attitudes, 1) Interviewing 2) Facial expressions and eye values, biases and behavioral 2) Counseling contact characteristics and the impact on 3) Advising 3) Voice tone and pitch financial planning B. Essentials in financial 4) Interpreting the meaning A. Cultural counseling of nonverbal behaviors B. Family (e.g. biological; non- 1) Establishing structure E. Attending and listening skills traditional) 2) Creating rapport 1) Physical attending C. Emotional 3) Recognizing resistance 2) Active listening D. Life cycle and age C. Characteristics of effective 3) Responding during active E. Client's level of knowledge, counselors listening; leading responses experience, and expertise 1) Unconditional positive F. Effective use of questions F. Risk tolerance regard 1) Appropriate types of G. Valuesdriven planning 2) Accurate empathy questions 3) Genuineness and self- 2) Ineffective and 2. Principles of communication and awareness counterproductive counseling D. Nonverbal behaviors questioning techniques A. Types of structured 1) Body positions, movements, communication and gestures .

Certified Flnancbl Planner Bwrd of Standards Inr owns these certification marks In the U.S., whlch It awards to individuals who succerrfully mplete CFP Board's initial end ongoing certification requimmh.