At age 65, Carlota’s financial position was better than her health. She had a large balance in an IRA that she wanted to move to a different IRA. Carlota withdrew $100,000 from the IRA and planned to roll over the funds into another IRA. Unfortunately, she died before completing the rollover. Carlota’s son, Andres, discovered what his mother had done a week after her death. Andres was both executor of Carlota’s estate and beneficiary of her IRA. Can Andres, in his role as executor, complete the rollover for his deceased mother by depositing the $100,000 in another IRA within the 60-day rollover period? a. Locate the IRS pronouncement(s) that deals with this situation. State the pronouncement number(s). b. Review the IRS pronouncement(s). Does it raise a need for new information to solve this question? c. Are you able to reach a conclusion about the research question from this IRS pronouncement(s)? If so, what is your conclusion(s)?

Mrs. Cora Yank (age 42) is divorced and has full custody of her 10-year-old son, William. Mrs. Yank works as a medical technician in a Chicago hospital. Her salary was $38,400, from which her employer withheld $1,045 federal income tax and $2,938 employee FICA tax. Several years ago, Mrs. Yank was seriously injured in a traffic accident caused by another driver’s negligence. This year, she received a $25,000 settlement from the driver’s insurance company: $20,000 as compensation for her physical injuries and $5,000 for lost wages during her convalescent period. Because she was unable to work for the first seven weeks of the year, she collected $1,400 unemployment compensation from the state of Illinois. Mrs. Yank earned $629 interest on a savings account. She contributed $800 to a traditional IRA. She is not an active participant in any other qualified retirement plan. Mrs. Yank paid $10,800 rent on the apartment in which she and William live. She received $1,600 alimony and $2,350…

Paul, a single dad with three children aged 21, 11 and 9 died recently. His late wife, Winifred died giving birth to their third child. Paul did not have a will. His estate comprises the following assets: Family home: $330,000 Superannuation: $115,000 Cash: $15,000 Family car: $20,000 Art work: $8,000   Describe some of the issues associated with Paul’s intestacy. Outline some of the estate planning strategies that Paul could have considered if he had prepared a will.  What are the advantages of having a valid will in place?