Personal Finance (MindTap Course List)
13th Edition
ISBN: 9781337099752
Author: E. Thomas Garman, Raymond Forgue
Publisher: Cengage Learning
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Question
Chapter 5, Problem 6FPC
Summary Introduction
Case summary:BL passed away recently he held number of assets and it is required to identify who will receive his assets, based on analysis it is determined that his widow is the legal owner of his most of the assets and his daughter and son will get accounts payable at death.
Characters in the case : BL of Scranton, Pennsylvania.
Adequate information: BL passed away, and left some assets in the form of checking and savings accounts, some noncash assets and two savings accounts payable at death. It is required to determine the legal owner of each asset after his death.
When a will is written by deceased all the distributions are based on that will if nothing is available then legal heirs will be the legal owners after the death.
To determine: The ownership of assets held by BL after his death.
Introduction:
Establishment of ownership of assets:the ownership of asset depends on various factors such as, asset is owned by the person who has registered documents on his name, an asset can be owner by an individual or jointly.
An individual owner of asset or account has one owner who is responsible for the account and activity.
A joint owner has two or more owners, each of whom has legal rights to the funds of the account. They are three types of joint ownerships.
- Joint tenancy with right of survivorship
- Tenancy in common
- Tenancy by the entirety
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Students have asked these similar questions
1. David Collins died during the current year. The personal representative of David's estate reviewed the
following assets:
Stocks in David's name only:
2,000,000
Investment property in a trust that David has the right to revoke:
1,500,000
Primary home owned jointly with his wife (wife did not contribute to the purchase):
1,000,000
Insurance policy owned / insuring David with the proceeds payable to his daughter:
800,000
Vacation home owned jointly with his son (son did not contribute to the purchase):
500,000
Cash placed in an irrevocable trust by David 8 years ago with David's friend as trustee:
600,000
What is the value of David's gross estate for estate tax purposes?
$3,500,000
b. $4,250,000
а.
c. $5,300,000
d. $6,400,000
Marie Hardy’s will has the following provisions:
"I leave the cash balance deposited in the First National Bank (up to a total of $50,700) to Jack Abrams. I leave $19,800 cash to Suzanne Benton. I leave 1,260 shares of Coca-Cola Company stock to Cindy Cheng. I leave my house to Dennis Davis. I leave all of my other assets and properties to Wilbur N. Ed."
Assume that the estate has the following assets: $40,600 cash in the First National Bank, $17,700 cash in the New Hampshire Savings and Loan, 1,050 shares of Coca-Cola stock, 1,360 shares of Xerox stock, a house, and other property valued at $14,100. What distributions will be made from this estate?
Assume that the estate has the following assets: $55,200 cash in the First National Bank, $5,300 cash in the New Hampshire Savings and Loan, 1,360 shares of Coca-Cola stock, 590 shares of Xerox stock, and other property valued at $29,000. What distributions will be made from this estate?
Marie Hardy’s will has the following provisions:“I leave the cash balance deposited in the First National Bank (up to a total of $50,000) to Jack Abrams. I leave $18,000 cash to Suzanne Benton. I leave 1,000 shares of Coca-Cola Company stock to Cindy Cheng. I leave my house to Dennis Davis. I leave all of my other assets and proper-ties to Wilbur N. Ed.”a. Assume that the estate has the following assets: $41,000 cash in the First National Bank, $16,000 cash in the New Hampshire Savings and Loan, 800 shares of Coca-Cola stock, 1,100 shares of Xerox stock, a house, and other property valued at $13,000. What distributions will be made from this estate?b. Assume that the estate has the following assets: $55,000 cash in the First National Bank, $6,000 cash in the New Hampshire Savings and Loan, 1,200 shares of Coca-Cola stock, 600 shares of Xerox stock, and other property valued at $22,000. What distributions will be made from this estate?
Chapter 5 Solutions
Personal Finance (MindTap Course List)
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