Trudy has just recorded a deed that gives her daughter, Sally, a life estate in the family farm plus a general power of appointment over the farm. Which is a CORRECT statement regarding the property interests given to Sally? A) A disadvantage of the life estate is that it is a contingent interest. B) A disadvantage of the general power of appointment is that Sally will not be able to appoint the remainder interest in the property to herself. C) A disadvantage of the life estate is that it is a future interest. D) An advantage of the general power of appointment is that Sally will be able to become the sole owner of the farm.
Trudy has just recorded a deed that gives her daughter, Sally, a life estate in the family farm plus a general power of appointment over the farm. Which is a CORRECT statement regarding the property interests given to Sally? A) A disadvantage of the life estate is that it is a contingent interest. B) A disadvantage of the general power of appointment is that Sally will not be able to appoint the remainder interest in the property to herself. C) A disadvantage of the life estate is that it is a future interest. D) An advantage of the general power of appointment is that Sally will be able to become the sole owner of the farm.
Chapter19: Family Tax Planning
Section: Chapter Questions
Problem 3DQ
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Trudy has just recorded a deed that gives her daughter, Sally, a life estate in the family farm plus a general power of appointment over the farm. Which is a CORRECT statement regarding the property interests given to Sally?
A)
A disadvantage of the life estate is that it is a contingent interest.
B)
A disadvantage of the general power of appointment is that Sally will not be able to appoint the remainder interest in the property to herself.
C)
A disadvantage of the life estate is that it is a future interest.
D)
An advantage of the general power of appointment is that Sally will be able to become the sole owner of the farm.
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