Upon Jena’s retirement, the couple plans to relocate their home close to the beach. For this purpose, they intend to buy a house near the beach and a rental property (to fund their retirement). They do not have the funds to make these purchases. Please explain to the couple the downsizing retirement strategy most appropriate to their circumstance.
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Upon Jena’s retirement, the couple plans to relocate their home close to the beach. For this purpose, they intend to buy a house near the beach and a rental property (to fund their retirement). They do not have the funds to make these purchases. Please explain to the couple the downsizing retirement strategy most appropriate to their circumstance.
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- Henry and Rita disagree about how to manage their finances after their marriage, and their children are concerned about receiving their inheritances. Which of the following strategies would you recommend to address these issues? A) Have each spouse draft a will disinheriting the other B) Have Henry and Rita title all of their assets as JTWROS after they get married C) Have the families enter into a family settlement agreement D) Have Henry and Rita execute a premarital property agreementHenry and Rita disagree about how to manage their finances after their marriage, and their children are concerned about receiving their inheritances. Which of the following would be a good strategy to allow Henry and Rita to agree on how their property is divided while they are living and also agree on the relinquishment of marital property rights when one of them dies? Henry and Rita should execute a premarital property agreement. Henry and Rita should title all of their assets as JTWROS after they are married. A) Neither I nor II B) II only C) I only D) Both I and IIYour client wants to purchase a residence for his aging parents, while minimizing the burden of ownership of the property for them and maximizing their enjoyment of it. Which one of the following states an advantage of titling the property in your client's name as sole owner rather than in joint tenancy with right of survivorship with his parents? A) The property will receive a step-up in basis when his parents die. B) The property will pass to his parents outside of probate. C) He will avoid gift tax liability by titling the property this way. D) His parents will have a life estate in the property if he predeceases them.
- John is frustrated in his inability to sell his house for the amount he wants. What should Anita do to educate John? Will this education process help Anita obtain the listing? How?Karen is the sole owner of a wildly successful small business. However, Karen's financial advisor has told her that her estate would be unable to meet its cash requirements if she were to die today, and the business would have to be sold. Karen, who is a widow with not children, is only 50 and plans to continue running the business for many years. However, she does want to take some action to prevent the possible sale of the business should she die, and prevent future appreciation of the business from inclusion in her gross estate. Karen is very close to one of her nieces, who has shown an interest in and aptitude for the business. Which one of the following actions would be most appropriate to help meet the liquidity needs of Karen's estate and would be consistent with her objectives and situation? A)Karen should enter into a private annuity agreement with her niece regarding the business. B)Karen should convert the business into an S corporation and gift shares in the…A married couple have written a will that leaves part of their money to a trust fund. The income from this trust will benefit the surviving spouse until death, with the principal then going to their children. Why was the trust fund created? To reduce the estate of the surviving spouse and, thus, decrease the total amount of estate taxes to be paid by the couple. To ensure that the surviving spouse is protected from lawsuits filed by the couple’s children. To give the surviving spouse discretion over the ultimate use of these funds. To maximize the earning potential of the money because trust funds generate more income than other investments.
- Katie and Rob were married in 2010. Katie and Rob lived together until February 2020, when Katie left Rob to go live with her new boyfriend. Katie and Rob are not divorced or legally separated as of December 31, 2020. Rob has a daughter, Emily, who is a dependent child (qualifying child) of Rob and lived with Rob for all of 2020. Rob paid all costs of maintaining the home for him and Emily for all of 2020. Rob does not know where Katie is, and he would not be able to get Katie to sign anything. What would be the most beneficial filing status that Rob could use for 2020? Assume Rob has taxable income of $300,000.It's our last chance to peek into Tarek's financial planning as he prepares for his death. Now that Tarek is married, he wants to make sure that he and his wife have appropriate estate planning documents in place. Right now, neither Tarek nor his wife Samantha have drafted any legal documents. This is a worry for Tarek because he has several wishes he would like carried out should he die or become incapacitated. For example, if he were to die, he would like to be buried in his hometown, which is in another state. Also, if he were to be diagnosed as being in a prolonged vegetative state, he would prefer to be removed from all artificial lifesaving measures, except food and water. Additionally, he and Samantha are currently shopping for a new car for her. Tarek is thinking of selling his motorcycle, which is owned fee simple, and using the proceeds as a down payment for the new car. Tarek does not know how to title the new car. Instructions Please answer the following questions for…Danny and Julie, a married couple, decided to sell their community property home in a community property state, and reinvest their sale proceeds in a new home in a common law state with only Julie's name on the title. Which statement below is correct? A) The new home will be considered community property, but only if Julie places Danny’s name on the title as tenancy by the entirety. B) The new home will be considered the separate property of Julie. C) The new home will be considered community property. D) Danny would have rights to only the sale proceeds from their prior home.