hard · Certified Financial Planner General Principles
The Fontaine family engages a CFP® professional for an engagement strictly limited to monthly cash flow monitoring and budgeting. During a meeting, the clients present a complex proposal for an estate freeze using a Family Limited Partnership and ask for the planner's recommendation.
Which action is most appropriate under the Practice Standards?
- Provide a specific recommendation on the Family Limited Partnership immediately to maintain the momentum of the financial planning process.
- Offer to expand the scope of the engagement in writing to include estate planning or refer the matter to a qualified estate attorney.
- Recommend the family use a Grantor Retained Annuity Trust instead, as it typically offers better quantitative outcomes for estate freezes.
- Decline to discuss the estate freeze concept entirely to avoid any potential for unauthorized practice of law.
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