ABA Online Review Course for the CTFA Examination
This course is designed for those preparing for the Certified Trust and Financial Advisor (CTFA) Examination to earn certification through the Institute of Certified Bankers (ICB). CTFA is applicable to financial services professionals whose primary function and expertise focus on the provision of fiduciary services related to trusts, estates, guardianships and individual asset management accounts.
Learning Objectives At the end of the course, participants should be familiar with the following areas:
Fiduciary Law and Trust Activities
Tax Law
Investments
Personal Financial Planning
Insurance
Format
The ABA Online Review Course for the CTFA Examination is a self-paced course. It requires between eight and twelve weeks to complete the course. Participants take the Sample Tests first to identify the areas where they should concentrate their study. After studying the various sections of the course, they will be able to complete the review questions from each section. After completing these activities, candidates may take a sample CTFA exam. Access to all lessons and quizzes at the online course site will be available for the duration of the course. A discussion board will have forums organized according to subject matter. There, participants are encouraged to share insights and thoughts with each other as well as to post inquiries to the mentor.
ILT Only ICB
8246 Building Trust Expertise - Investment Management
This program provides an overview of the investment management issues that affect personal trusts. It covers investment types; stock and bond selection/analysis; investment portfolio management; and economical and legal influences on investments.
8246 Building Trust Expertise - Taxation and Estate Planning
This program provides an overview of the taxation and estate planning issues that affect personal trusts. It covers income tax, the role of transfer taxes in trust management, and basic estate planning, including the use of the marital deduction.
8246 Building Trust Expertise - Trust Administration
This program provides an overview of trust administration for personal trusts and is designed to help new trust professionals identify key issues and use common trust terminology appropriately. It covers trust basics, including requirements to create a trust and common types of personal trusts; account acceptance and termination considerations, and factors to consider before making discretionary distributions.
Discretionary Distributions
Audience
This course is appropriate for Trust Officers who have already achieved a basic level of knowledge and expertise in the trust field or those who have completed Personal Trust Curriculum I.
Synopsis
The Discretionary Distributions course introduces the basic principles of discretionary distributions. It covers the reasons for making discretionary distributions and the trustee's authority to make them, as well as distribution standards, tax consequences, and other potential liabilities involved in making discretionary distributions.
After successfully completing this course, you will be able to:
Identify the relevant factors to consider in making discretionary distributions.
Identify and interpret the standards applied in exercising discretionary powers.
Describe the potential tax consequences of making discretionary distributions.
Explain the effects of special considerations such as attachment by creditors, spendthrift clauses, and disabled or incapacitated beneficiaries.
Audience
This case study activity is appropriate for trust officers who have expanded their skills in estate planning by completing all of the following courses in the Estate Planning series.
Estate Planning Overview
Estate Planning for Marital Deductions
Estate Planning for Lifetime Gifts
Estate Planning for Charitable Giving
Estate Planning for the Business Owner
Synopsis
This case study provides an opportunity to apply concepts learned in earlier estate planning courses to real-world client situations.
After successfully completing this course, you will be able to:
Identify planning opportunities that meet clients' needs.
Determine the tax effect of a client's estate plan and possible transactions.
Design strategies to minimize a client's estate taxes.
Craft solutions to client needs that will bring new business opportunities.
Estate Planning for Charitable Giving
Audience
This course is appropriate for trust officers who already have a basic knowledge of estate tax and seek to expand their skills to enable them to advise clients with respect to their clients' estate plans.
Synopsis
This course provides participants with the knowledge needed to advise clients in the area of charitable giving and how it is used to provide additional liquidity for the estate and savings on potential estate taxes.
Association
After successfully completing this course, you will be able to:
Identify the advantages, features, and benefits of charitable trusts.
Explain the tax rules affecting charitable contributions.
Advise clients when charitable gifts are appropriate and how such gifts should be made, in light of tax and non-tax considerations.
Explain the benefits and disadvantages of public and private foundations and supporting organizations.
Determine the tax deduction based on the suggested type of charitable contribution for clients.
Identify the primary characteristics of split-interest trusts.
Determine which charitable trust will best serve clients' personal and charitable needs.
Estate Planning for Lifetime Gifts
Audience
This course is appropriate for trust officers who already have a basic knowledge of estate and gift taxes and who seek to expand their skills to enable them to advise clients with respect to clients' estate plans.
Synopsis
This course introduces participants to the concepts of lifetime gifts. It discusses the appropriateness of lifetime gifts, use of the annual exclusion, and various techniques for transferring assets.
After successfully completing this course, you will be able to:
Assist clients in determining whether they should incorporate a plan of lifetime gifts within their estate plan.
Advise clients how to make effective use of the annual exclusion.
Describe different techniques for transferring assets to minors.
Explain how changing tax rules may affect lifetime giving.
Based on clients' individual situations, develop lifetime giving strategies to include the use of annual exclusions.
Explain the use of Crummey trusts and when they may be appropriate in clients' situations.
Distinguish between the features and benefits of GRITS, GRATS, and GRUTS, and suggest strategies for using them when appropriate.
Estate Planning for Marital Deduction
Audience
This course is appropriate for trust officers who already have a basic knowledge of Federal Transfer Taxes and seek to expand their skills to enable them to advise clients with respect to clients' estate plans.
Synopsis
Estate Planning for the Marital Deduction is designed to reinforce the professionalism and expertise you currently possess as a trust officer. Students will learn strategies for the optimum use of the marital deduction. By comparing marital formulas, students will learn to determine which marital deduction trusts to use for particular client needs.
After successfully completing this course, you will be able to:
Recognize a marital deduction, its value, and requirements for property to qualify for the marital deduction.
Compare strategies for optimum use of the marital deduction depending on the client's tax and nontax preferences (maximum deduction, optimum A-B plan, equalizing marital estates).
Describe the purpose of the different marital formulas used to calculate the marital deductions, when each is commonly used, and factors to consider in selecting a formula.
Identify the purposes, features, and requirements of the commonly used marital trusts and recommend which would best serve your clients' needs.
Catalog # 3002614
Estate Planning for the Business Owner
Audience
This course is appropriate for trust officers who have already achieved a basic expertise with estate planning generally and who seek to expand their knowledge of estate planning for business owners. Participants undertaking this course should have a firm understanding of the transfer tax system and basic estate planning, including planning for lifetime gifts and estate planning for the marital deduction.
Synopsis
This course examines the issues associated with the transfer of various types of business entities including valuation and tax considerations.
After successfully completing this course, you will be able to:
Identify the challenges in estate planning for owners of closely held businesses.
Identify methods used in valuing closely held businesses, determining discounts, and structuring restrictive agreements.
Describe the planning techniques available for the effective transfer of privately owned businesses from one generation to another.
Explain the advantages and disadvantages of various forms of business entity.
Describe the techniques used in succession and estate planning to transfer ownership interest and control of privately owned businesses.
Identify issues related to reducing valuation, freezing value, entity selection, and succession in estate planning for owners of closely held businesses.
Estate Planning Overview
Audience
This course is appropriate for Trust Officers who have already achieved a basic level of knowledge and expertise in the trust field.
Synopsis
The Estate Planning Overview course presents the basic knowledge to enable Trust Officers to recognize the needs of clients in order to determine an estate plan with tax or non-tax considerations. The course also reinforces the consequences of the unauthorized practice of law.
After successfully completing this course, you will be able to:
Examine the goals of estate planning as part of a client's overall financial strategy.
Identify non-tax considerations as relevant to estate planning.
Recognize the consequences of engaging in the unauthorized practice of law.
Catalog # 3002613
Federal Estate and Gift Taxes
Audience
This course is appropriate for trust officers who have already achieved a basic level of knowledge and understanding of federal estate and gift taxes.
Synopsis
This course will give you the knowledge necessary to discuss the implications of federal estate and gift taxes, and to answer common tax-related client questions.
After successfully completing this course, you will be able to:
Explain the impact of the unified tax system.
Identify the types of property included in the gross estate.
Explain the principles of valuing property in the gross estate.
Identify property that may be subject to a discount in valuation.
List deductions, exclusions, and credits that apply to either the estate or gift tax.
Describe transfers that are subject to the gift tax.
Calculate estate or gift tax due.
Catalog # 3002616
Fiduciary Income Taxes
Audience
This course is appropriate for Trust Officers who have already achieved a basic level of knowledge and expertise in the trust field.
Synopsis
The Fiduciary Income Taxes course provides you with an understanding of tax terminology and concepts applicable to estates and trusts. The course contains detailed information regarding fairly complex concepts. Examples, self-check quizzes, and practice activities are used throughout the material to enhance your understanding of the concepts presented.
After successfully completing this course, you will be able to:
Distinguish between simple and complex trusts.
Explain the concept of the fiduciary account as a conduit.
Explain the basic concept and purpose of distributable net income (DNI).
Calculate trust accounting income.
Calculate distributable net income (DNI).
Calculate the distribution deduction.
Determine the amount of income taxable to each beneficiary.
Catalog # 3002617
Fiduciary Law
Audience
This course is appropriate for Trust Officers who have already achieved a basic level of knowledge and expertise in the trust field.
Synopsis
The Fiduciary Law course presents key regulations and rules that govern trusts and estates, including federal laws and model acts being adopted by different states. It covers the duties and powers of a trustee, as well as investment standards and duties. The prudent man/person rule, prudent investor rule, and Uniform Principal and Income Act are also discussed.
After successfully completing this course, you will be able to:
Explain the sources of governance for institutional trustees.
Identify federal laws that affect trusts and explain their impact.
Describe key duties, powers, and liabilities of trustees.
Explain the prudent investor standard of conduct under the prudent man/person and prudent investor rules, and describe the general investment duties of fiduciaries.
Explain key provisions of the Principal and Income Act.
Catalog # 3002611
Financial Planning Skills
Audience
Trust professionals looking for a big picture view of financial planning concepts. This course is appropriate for trust officers who already have achieved a basic level of knowledge and expertise in the trust field.
Synopsis
This course provides participants with a working knowledge of financial planning topics.
After successfully completing this course, you will be able to:
Understand the scope of financial planning.
Interpret the different measurements of value used in financial planning.
Construct a Balance Sheet and a Cash Flow Statement.
Complete a Profile Form on a trust client.
Assess client's financial situation to:
Identify needs and objectives.
Determine major financial planning issues.
Assist clients in making appropriate financial decisions.
Use financial planning tools to identify and develop new business.
Generation Skipping Transfer Tax
Audience
This course is appropriate for trust officers who have already achieved a basic level of knowledge and expertise in the trust field.
Synopsis
This course will give participants the understanding they need to discuss the implications of the generation-skipping transfer (GST) tax and answer common tax-related client questions.
After successfully completing this course, you will be able to:
Define key terminology, including transferor, skip person, and non-skip person.
Identify the three types of generation-skipping transfers.
Describe the available GST tax exclusions and the GST tax exemption.
Calculate GST tax due.
Recognize situations that may be affected by the GST tax.
Suggest planning techniques to minimize the effect of the GST tax, when appropriate.
Investments I
Audience
Trust professionals looking for a big-picture view of investments and investment planning concepts. This course is appropriate for trust officers who have already achieved a basic level of knowledge and expertise in the trust field.
Synopsis
The Investments I course focuses on an overall discussion of investment risk, organization of the investment decision process, regulatory influences for investments and the similarities and differences of commingled funds and mutual funds investments.
After successfully completing this course, you will be able to:
Explain the various tools used in organizing the investment decision
Identify the regulatory influence for investments
Describe the similarities and differences of commingled funds and mutual funds
Discuss various forms of investment risk
This course is not intended to train students to become the sole-providers of investment information to clients. Instead, students should become familiar with a big-picture view of investments to better serve and address clients' needs. Students should still follow any internal bank policy or procedures regarding the discussion of investments and referrals to internal support associates.
Catalog # 3002618
Investments II
Audience
Trust professionals looking for a big-picture view of investments and investment planning concepts. This course is appropriate for trust officers who have already achieved a basic level of knowledge and expertise in the trust field
Synopsis
This course builds on the earlier investment course and focuses on the concepts used in valuing investments, the characteristics of different types of securities markets, and factors to consider in mutual fund selection.
After successfully completing this course, you will be able to:
Understand the key concepts needed in the valuation of investments such as rate or return, present value, discount rate, and cash flows.
Answer client questions about the characteristics of different types of financial markets and the factors that affect market behavior.
Evaluate mutual funds and select those that are most appropriate for a client's situation.
Life Insurance and Annuities
Audience
This course is appropriate for trust officers who already have achieved a basic level of knowledge and expertise in the trust field.
Synopsis
This course enhances the trust officer's value to clients as a credible source of insurance information. Participants will learn about life insurance and annuity products, review related policy issues and fiduciary responsibilities, and explore the uses of these products in serving client's financial- and estate-planning needs.
After successfully completing this course, you will be able to:
Describe the benefits of life insurance and annuities for estate and financial planning needs.
Describe the features and characteristics of the different types of life insurance and annuities.
Guide cost-effective insurance policy and annuity contract selections to meet clients' preferences, needs, and asset safety concerns.
Assist clients with determining life insurance and income requirements and ensuring coverage adequacy and lifetime income protection.
Advise clients of taxation considerations relevant to their insurance and annuity contracts.
Describe the features and characteristics of hybrid life insurance policies that serve common trust client needs.
Describe special investment features of annuity types.
Manage life insurance and annuity contracts within a trust according to bank policy and fiduciary responsibility.
Identify policy and contract issues that affect clients' estate and financial planning objectives.
Identify additional uses for life insurance and annuity contracts.
8203 Retirement Plan Services - Investments
This AIB course discusses the basics of assets types, mutual funds, and company stock to provide a foundation for utilizing these vehicles in the administration of qualified plans. Investment strategies such as asset allocation, participant directed, and risk management are discussed. The course reviews how to assist a client in establishing a client funding policy. The various performance indicators are reviewed to provide the retirement services professional with a more practical understanding of how to explain investment situations to clients. Participant loan rules and application are reviewed. Trustee voting responsibilities and proxy handling are discussed.
After successfully completing this course you will be able to:
Define the various asset classes.
Define types of mutual funds, NAVs, fees, and suitability.
Review a mutual fund prospectus.
Review a client funding policy statement.
Explain ERISA 404(c) application.
Discuss the various types of investment risk.
Discuss how participant loans are plan investments.
Explain proxy handling and voting responsibilities for qualified plans.
Recommended AIB Credit: 1
8202 Retirement Plan Services – Laws and Regulations
This AIB course discusses the various laws, regulations, governing bodies, and legal documentation required in the sponsorship and servicing of qualified plans. A practical look at ERISA as it applies to fiduciary responsibilities, what is permitted, what types of reporting are required, and general nondiscrimination rules in the daily operation of qualified plans are reviewed. The various documents required to setup a plan and a trust, defining the various duties and responsibilities are reviewed. Internal Revenue requirements regarding contribution and benefit limits, nondiscrimination testing, participant recordkeeping and distributions are discussed. Other regulatory agencies, such as the OCC, SEC, and the PBGC and their requirements will be discussed to a lesser extent.
After successfully completing this course, you will be able to:
Describe the practical application of ERISA and the IRC
Identify when certain activities are exempt from prohibited transaction rules
Review and understand a trust document
Identify what documentation is required to establish a plan
Describe, testing requirements, in general terms
Describe how distributions from qualified plans work
Explain the governance of the OCC and SEC with respect to qualified plans
Define the rules and filings required by the PBGC.
Recommended AIB Credit: 1 8201 Retirement Plan Services – Plan Type and Design
This AIB course discusses the various types of qualified and nonqualified retirement and benefit plans. It reviews the evolution of defined contribution plans, government mandates for establishing these plans, client suitability and basically how these types of plans work. The following defined contribution plans are covered: profit sharing, cash or deferred arrangements/401(k), ESOP, stock bonus, 403(b), and SIMPLE. Defined benefit type pension plans including: defined benefit, target benefit, cash balance, and 457 government plans are reviewed as well. Regulatory requirements for establishing these types of plans and client suitability will be reviewed. In addition, to a lesser extent this course covers the various types of Individual retirement Accounts, and Section 125 Cafeteria plans and VEBAs and how they may be established and used by clients and individuals as tax saving vehicles.
After successfully completing this course, you will be able to:
Describe the makeup of various types of defined contribution plans and how they work
Describe the makeup of various types of defined benefit pension plans and how they work
Explain why qualified and nonqualified plans are established
Describe the differences between qualified and nonqualified plans
Understand the various types of IRAs and how they work
Explain the basics about how welfare benefit plans operate
Discuss the distinguishing characteristics of qualified and nonqualified plans and client suitability.
Recommended AIB Credit: 1
Retirement Planning
Audience
This course is appropriate for Trust Officers who have already achieved a basic level of knowledge and expertise in the trust field.
Course Description
Retirement Planning focuses on the types of retirement plans available, factors that impact various plans, and the importance of integrating retirement benefits with financial and estate planning. Activities offer an opportunity to apply guidelines that address the unique implications of retirement assets.
After successfully completing this course, you will be able to:
Identify the differences between defined benefit plans and defined contribution plans
Describe the characteristics of common qualified, nonqualified, and individual retirement plans
Describe the use of trusts to fund nonqualified plan benefit obligations
Identify the different forms of distribution required for different types of qualified retirement plans
8261 Trust Basics
This AIB course provides you with an overview of the trust department in a commercial bank, including how it fits into the bank's overall operations, the services it provides, and generally how those services are delivered. Particular emphasis is placed on the importance of accumulating, preserving, and disposing of an estate.
After successfully completing this course, you will be able to:
Explain the role of the trust department in a bank
Describe the trust services that corporate and consumer customers receive
Identify assets and ownership related to trust services
Explain the Prudent Investor Rule and how it relates to investment risk, policy, and responsibility
Define what a personal trust is, reasons for having one, and the characteristics of a good trustee.
8300 Trust Investments
Trust Investments focuses on the theory and practice of trust department investment services. After successfully completing this program, participants will be able to: explain the basic dynamics and complexities of the investment process; define the nature of the trust function within a bank and the purpose of investments to the bank's trust department; list the trust services available; explain economic forecasting principles and illustrate their application; describe the techniques of valuing stocks and other securities; explain the concepts of portfolio management. Audience: Trust department personnel, including officer trainees, paralegals, administrative assistants, and retail bank personnel.
8325 Trust Operations
This AIB course provides an overview of a trust institution's operations, the products and services associated with the operations of a trust institution, and how trust operations professionals can help their associates and customers both potential and existing. Presentations, in building-block format, provide the definitive concepts and direction to help participants make decisions relative to reporting systems, provide accounting tactics, and best report to the regulatory agencies.
After successfully completing this course, you will be able to:
Trace the historical development of banks and the trust business; analyze assets and forms of property ownership; and describe the organization of a trust institution
Analyze future-fee and active-fee personal trust and agency business
Compare investment vehicles; identify how securities are classified
Describe how securities are traded, settled, and delivered
Explain how an account is established, describe departmental record keeping
Define and identify internal and external controls employed by trust institutions
Contrast asset and liability transactions
Describe cash management; identify cash transactions in the trust accounts; describe how collective fund accounting is accomplished
Describe the various reports provided to customers.
Recommended AIB Credit: 1-2-3
1106 Understanding Financial Planning
This course enables participants to help their customer's plan for financial growth. It covers how to analyze a customer's financial needs, to ask questions that elicit information about a customer's financial situation, and how to match products and services to a customer's financial situation at various life stages. Audience: Staff who sell or refer products and services.
