LLQP Segregated Funds & Annuities · Component 1.3 · 35% of the exam
A client's need to avoid family disputes over the estate is helped by:
- Clear, current beneficiary designations coordinated with the will, and family communication
- BLeaving instructions general, so the family can decide among themselves what is fair once the estate is settled
- CNaming the estate on every contract, so the will governs everything in one place
- DKeeping the plan private, so no family member can object before death
Correct answer: A) Clear, current beneficiary designations coordinated with the will, and family communication
Inconsistency between designations and wills is a common source of litigation. Coordination is the remedy.
Why the other options are wrong
- BVagueness fuels disputes.
- CNaming the estate loses probate bypass and creditor protection.
- DSurprises cause conflict.
Exam tip
Coordinate designations with the will; communicate.
Common mistake
Updating the will but not the seg fund beneficiaries.
What this tests
CISRO competency component 1.3 — Assess the client's needs and situation — which is weighted at 35% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 1
- The first step before recommending a segregated fund or annuity is to:
- A client's 'time horizon' for an investment is:
- 'Risk tolerance' in an investor profile refers to:
- A client says he wants 'high returns with no risk of losing money'. The agent should:
- Investment objectives are commonly classified as:
- Why is the client's marginal tax rate relevant to a segregated fund recommendation?
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.