29 - 35 36 - 42 43 - 49 50 - 56 57 - 63 48.7 Operation of Law, Transfers Through Trusts, Transfers by
64
Contract
47. Distribution Rules, Alternatives
48.8 Probate Strategies
And Taxation
48.9 Sample Questions 1 - 4
48. Property Titling And Transfer
48.10 Same Questions 5 - 9
49. Documentation
48.11 Answer Key
1. B Sam's gross estate will increase by $225,000 from these assets ($50K + $75K + $100K). The joint CD will now be owned 100% by his wife. The life insurance proceeds will go to his wife free of gift and federal income tax. 2. A Tenancy by the entirety and community property are property arrangements between spouses only. 3. C Community property is a property agreement between spouses and does not avoid probate. Assets purchased with community property funds are considered community property.
Frequently Asked Questions 4. D
What is foreign exchange?
Tenants in common are free to transfer their respective shares of the property to other individuals.
Why isn't the EUR/USD currency pair quoted as USD/EUR? How Does Facebook Make Money?
5. C Traditional IRA accounts pass by "contract" which means whoever is named as the beneficiary on the account will receive the assets. Beneficiary designations take precedence over trust and will declarations.
How does accrual accounting differ from cash basis accounting?
6. A Individual accounts and tenancy in common property ownership will both be probated at the death of the owner. TOD (transfer-on-death) and POD (payable-on-death) are both effective beneficiary assignment strategies used to avoid probate. Revocable trusts will also avoid probate, even though these assets are generally included in the gross estate of the grantor. 7. A Death without a will is known as "intestate." 8. B
Trading Center
Some might consider creditor notification as another disadvantage; however, it is not. It sets a statute of limitations for creditors to come forward to file their claims. This prevents creditor issues in the future on the decedent's property. 9. D Annuity contracts and life insurance both pass by contract and avoid the probate process.
Partner Links
Introducing Data Mining And Modeling In Excel by Investopedia Academy Learn the Excel skills you need to succeed in finance from the most trusted name in financial Introducing Data Mining And Modeling In Excel by Investopedia education. Led by Daniel Jassy, CFA, you'll learn to work smarter with keyboard shortcuts, Academy create complex financial models, mine data like an expert and display your findings beautifully. Watch free trailer >>
Trade on your terms at E*TRADE. Open an IRA in 15 minutes. 15 minutes is a short time for long term planning. Trade Futures with TradeStation. Now $1.50/contract/side. No software fees. Start trading.
Next: Introduction
RELATED ARTICLES MANAGING WEALTH
Skipping-Out on Probate Costs Don't let bad estate planning lead to unnecessary costs and stress for your inheritors.
RETIREMENT
Why and How You Should Keep an Estate Out of Probate Including certain documents and designations in your estate planning can help your beneficiaries avoid the costs and headache of probate.
RETIREMENT
5 Benefits of Creating a Trust to Manage Wealth Trusts should be considered as part of an estate plan to manage and protect wealth.
RETIREMENT
Which Estate Transfer Technique is Right for You? This article explains the difference between the two estate transfer methods – a will and a trust – and the circumstances under which each can be used.
RETIREMENT
Why Your Estate Shouldn't Be Your IRA Beneficiary Here are five reasons why you should not name your estate as your IRA beneficiary.
INVESTING
Joint tenancy: Benefits and pitfalls This arrangement allows beneficiaries to access your account without having to go to court. Learn about the benefits and pitfalls to joint tenants with rights of survivorship (JTWROS). RETIREMENT
Living Trusts vs. Simple Wills: A Comparison A look at wills versus living trusts and when to choose one over the other.
INVESTING
Holding titles on real property Find out how best to claim and convey ownership on your assets.
Search Investopedia
DICTIONARY: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z