Estate planning is the process by which an individual may determine how his or her assets will be systematically transferredboth before and after death to achieve certain goals. The least compelling motive of this process is toCA.B.C.D.Ensure that the owner's intentions are honored.Prevent the forced sale of important assets.Act in accordance with the public policy against excessive accumulation of wealth.Avoid taxes.

Estate planning refers to the process of making arrangements for the management and distribution of…

Estate planning is the process by which an individual may determine how his or her assets will be systematically transferred both before and after death to achieve certain goals. The least compelling motive of this process is to OA. Ensure that the owner's intentions are honored. OB. Prevent the forced sale of important assets. C. OD. Act in accordance with the public policy against excessive accumulation of wealth. Avoid taxes.

Estate planning is the process by which an individual may determine how his or her assets will be systematically transferred both before and after death to achieve certain goals. The least compelling motive of this process is to OA. Ensure that the owner's intentions are honored. OB. Prevent the forced sale of important assets. C. OD. Act in accordance with the public policy against excessive accumulation of wealth. Avoid taxes.

Administration Of Wills/Trusts/ And Estates

5th Edition

ISBN:9781285281308

Author:Brown

Publisher:Brown

Chapter11: The Personal Representative

Section: Chapter Questions

Problem 6RQ

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Similar questions

Which of the following techniques is commonly used in estate planning to minimize estate taxes? A) Gifting assets to family members shortly before death B) Establishing a trust for beneficiaries C) Transferring assets into a taxable brokerage account D) Not creating a will or estate plan
What is the process of abatement? Select one: a.The establishment of how the creditors will be paid. b.Payment of the claims of creditors. c.An attempt to determine the deceased's intentions when the terms of the will are unclear. d.Selling of assets included in an estate to be able to pay creditors. e.A reduction of various bequests when the estate is not adequate to satisfy them completely.
What is the purpose of the laws of distribution? Choose the correct.a. To guide the distribution of personal property when an individual dies without a will.b. To verify the legality of a will, especially an oral will.c. To guide the distribution of real property when an individual dies without a will.d. To outline the functions of the executor of an estate.
How does a devise differ from a legacy? Choose the correct.a. A devise is a gift of money and a legacy is a nonmonetary gift.b. A devise is a gift to an individual and a legacy is a gift to a charity or other organization. c. A devise is a gift of real property and a legacy is a gift of personal property.d. A devise is a gift made prior to death and a legacy is a gift made at death.
In estate planning, setting ul a trust account in the name of beneficiaries may help to _______ a. Improve the faith of the beneficiaries b. Maximise the estate tax obligation c. Protect the beneficiaries against future inflation d. Protect the beneficiaries from the creditors of the donor
Which one of the following NOT a correct matching of a concept associated with liquidity planning with its description? A) Forced liquidation—estate shrinkage that occurs when the decedent’s personal representative must sell estate assets, usually at less than market value, to make up for a cash deficiency B) Estate debts—the money that the decedent’s personal representative must spend to pay the decedent’s lifetime obligations that had not been paid at the time of the decedent’s death C) Estate liquidity—the decrease in the value of a decedent’s estate from the time of the decedent’s death until the time of the ultimate distribution to the decedent’s devisees, legatees, and heirs D) Estate administrative expenses—the money that the decedent’s personal representative must spend to collect the decedent’s assets; pay claims of the estate; and distribute the remaining assets to the decedent’s devisees, legatees, or heirs
Which of the following statements regarding a cash flow plan for an estate is CORRECT? A cash flow plan for an estate should be flexible enough to account for unexpected expenses. A cash flow plan for an estate should indicate when the estate's cash inflows and outflows are expected to occur. In developing a cash flow plan, an executor should explore possible ways of reducing the estate's cash needs.
A grantor is disallowed from doing which of the following in a grantor trust? Avoiding taxation until the trust is revoked. Controlling the disposition of trust property. Distributing current income to the grantor or grantor's spouse. Revoking or modifying the trust.
Which of the following are desirable characteristics in a personal representative? He or she should have geographical proximity to the major assets of the estate. He or she should not have a personal relationship with estate beneficiaries. He or she should be approximately the same age as the decedent. He or she should be skilled in asset management and financial matters. A)III and IV B)I only C)II and III D)I and IV
What is the objective of the process of abatement? Choose the correct.a. To give legal structure to the reductions that must be made if an estate has insufficient assets to satisfy all legacies.b. To ensure that all property distributions take place in a timely manner.c. To provide adequate compensation for the estate executor and any appraisers or other experts that must be hired.d. To ensure that all legacies are distributed to the appropriate party as specified by the decedent’s will or state laws.
All of these statements about the selection of a fiduciary are correct EXCEPT A) an individual fiduciary is more likely to be appropriate for the administration of a small estate or trust. B) only an institutional fiduciary is duty-bound to avoid a conflict of interest. C) both an individual and institutional fiduciary owe a duty of impartiality in balancing the needs of the beneficiaries for income and capital appreciation. D) an institutional fiduciary is more likely to have the financial and managerial sophistication needed to exercise independent judgment.
Statement I: An estate represents the assets of a deceased person after all liabilities and taxes are deducted. Statement II: Real estate planning is the process of developing a plan to administer and distribute assets in a manner consistent with the desires and needs of a deceased person's beneficiaries. Statement II is true. Statement I is true. Statements I and II are false. Statements I and II are true.