SCHOOL OF ECONOMICS, FINANCE AND BANKING
UUM COLLEGE OF BUSINESS
SEMESTER A142
No.
Information on Course
1.
Course Name : ESTATE PLANNING
2.
Course Code: BWRR 3103
3.
Name(s) of Academic Staff: PN TAN SEK CHOO
4.
Rationale for the inclusion of the course in the programme:
This is one of the elective courses offered for BRMI (Hons) students.
5.
Semester/Year Offered:
5/3
6.
Total Student Learning Time (SLT)
L = Lecture
Face to face
L
20
14
SL
TLT
72.3
119.2
T = Tutorial
P = Practical
O = Others
7.
Credit Value: 3
8.
Pre-requisite (if any):
BWFF2013 Financial Management
9.
Objective(s) of Course :
Students are expected to
1. acquire knowledge and skill necessary on how to distribute assets effectively
to heirs.
2. understand how to prepare an estate plan that meets their personal and client
needs.
3. develop awareness of various issues associated with creation, retention or
disposition of a business interest in a family's financial planning and how to
deal with these issues.
10.
Course Learning Outcomes:
Upon completion of the course, students are able to
1. describe the estate planning process (C2, P2, A2).
2. explain the various estate planning instruments (C2, P2, A2).
3. apply the concepts, legal requirements and instruments in the process of
estate planning (C3, P3, A3)
4. apply various types and uses of the power of attorney and personal
representative to meet estate planning needs (C3, P3, A3).
5. suggest suitable estate planning for owners of different types of business
(C4, P3, A3).
11.
Transferable Skills:
1. Problem solving: making recommendations about the estate planning needs and also
the specific needs of clients.
2. Communications: able to present ideas orally and to prepare report.
3. Critical thinking in analysing the various techniques and procedures on how to
distribute assets effectively.
12.
Teaching-learning and assessment strategy:
Mixed method between teacher-centred and students-centred. For the assessment
strategy it is a continuous assessment.
13.
Synopsis:
This course concentrates on one of the important areas in financial planning which is
estate planning. In Part 1, the definition and scope of estate planning are explained.
Next, students are introduced to the various techniques and procedures on how to
distribute assets effectively to heirs. The probate process and strategies for gifting are
also covered. Further management of property and its disposition is described with use
of such relevant tools as revocable living trusts, wills and will substitutes. This course
also reviews various business structures and the special issues associated with creation,
retention or disposition of a business interest in a family's financial planning. Overall
this course will give the students ability to apply these concepts to best serve their
estate planning needs and also the specific needs of clients.
14.
Mode of Delivery:
This course will be conducted in the forms of lectures, discussions, presentations and
case study.
15.
Assessment Methods and Types:
Coursework (Project 20%, Presentations 10%, Mid Term Examination 20%, Quizzes
10%): 60%
Final Examination: 40%
16.
Mapping of the course/module to the Programme Aims
Course Learning Outcomes
Programme Aims
The aims of Bachelor of Risk
Management and Insurance (Honours)
are to produce intelectual, expert,
competent and courteous graduants in
the field of risk management and
insurance in order to meet the demand
for workforce in related diciplines.
17.
Mapping of the course/module to the Programme Learning Outcomes
Course Learning Outcomes
Programme Learning Outcomes
1
Identify and explaining the concepts
and
theories
related
to
risk
management and insurance.
Apply concepts, tools, and techniques
in solving real world risk management
problems faced by companies in the
pursuit of maximizing shareholders
wealth.
Ability to analyse critically and
analytically in the risk management
process to assist in making effective
decisions.
Communicate
effectively
graphically, and in writing.
orally,
Work effectively in teams and
demonstrate interpersonal skills in the
related discipline.
Carry out the professional ethical code
of conduct within the discipline of risk
management and insurance.
Update, enhance and integrate risk
management and insurance knowledge
for career development on a
continuous basis.
Demonstrate entrepreneurial skill and
capabilities in identifying business
opportunities in risk management and
insurance.
Ability to supervise and understand the
roles of a leader.
18.
Content outline of the course/module and the SLT per topic
Topic
1.0 ESTATE
PLANNING
FUNDAMENTALS
1.1 The purpose and importance of
Estate Planning
1.2 The legal principles of estate
planning
1.3 The estate planning process:
accumulation, conservation and
distribution
1.4 The estate planning team
2.0 WILL AND WILL PLANNING
2.1 The importance of will in the estate
planning process
2.2 Types of will
2.3 Steps and legal requirements in will
planning
2.4 Principles and basic procedures in
testacy and intestacy
2.5 Practical
challenges
in
the
administration process of estate
2.6 Will planning for business owners
Learning
Outcomes
Face to Face
SL
TLT
P/O
12
2, 3
12
3.0 ESTATE OF MUSLIMS
3.1 Islamic
law
principles
applicable to estate planning
3.2 Will as applicable to Muslims
3.3 The distribution of estates of
Muslim
3.4 Estate planning processes for
Muslims
4.0 TRUSTS
4.1 The
characteristics
and
components of trusts
4.2 Methods of classifying trusts
4.2.1 express trusts
4.2.2 resulting trusts
4.2.3 constructive trusts
4.2.4 statutory trusts
4.3 Types and trusts and their
characteristics
4.3.1 fixed trusts and their
characteristics
4.3.2 living trusts vs.
discretionary trusts
4.3.3 living trusts vs.
testamentary trusts
4.3.4 revocable trusts vs.
irrevocable trusts
4.3.5 funded vs. unfunded
trusts
4.4 Application of trusts in estate
planning
4.5 Taxation of trusts
5.0 POWERS OF ATTORNEY (POA)
5.1 Definition and characteristics of
POA
5.2 Simple vs. durable (POA)
5.3 The Power of Attorney Act
1949
5.4 Duties and powers of the
Attorney- in- Fact
5.5 Procedural aspects of the Power
of Attorney.
2, 3
1.5
4.5
2, 3
18
3, 4
12
6.0 DUTIES AND POWER OF THE
PERSONAL REPRESENTATIVE
6.1 Various duties of the personal
representative
6.2 Rights of beneficiaries
6.3 General knowledge of the rights
of the beneficiaries.
7.0 ESTATE
PLANNING
FOR
BUSINESS OWNERS
7.1 Types and characteristics of
business
7.2 Business continuation problems
of owners: death, disability and
retirement
7.3 Solution
to
business
continuation problems: the buysell concept
7.4 Types of buy-sell plans
7.5 Valuation of business: method,
discount factors and selection
7.6 Funding options: valuation
principles, role of business
insurance and tax issues
7.7 The key man factor in business
owners
and
non-owner
employees: approves and nonapproves scheme.
3, 4
1.5
4.5
12
20
14
42
84
Face to Face
SL
TLT
Assessment
Course work
60%
44.4
61.3
105.7
Final examination
40%
2.5
11
13.5
46.9
72.3
119.2
Total Notional Hours
Credit Hours
Main Reference
Clifford, D., (2010), Plan Your Estate, (10th ed.) NOLO.
Additional References
Jacobs, D. L., (2009), Estate Planning Smarts: A practical, User-friendly, Action Oriented
Guide, (1st ed.), DJ Working Unlimited Inc.
Miles, M. E., (2007), Real Estate Development: Principles and Process (4th ed.), Urban
Land Limited.
Kapoor, R.J., Dlabay, R.L., Hughes, J.R. (2004). Personal Finance. McGraw- Hill.
Seong, Y.L. (1999). Estate Planning 1: Decoding the Estate Planning, DWealth
Publication.
Seong, Y.L. (1999). Estate Planning 2: Decoding the Estate Planning, DWealth
Publication
Lecturers name: Mdm Tan Sek Choo
Office room no: COB Main building, room 346
Contact no: 013-515 3880
Email:
[email protected]
