ADVANCED ACCOUNTING
12th Edition
ISBN: 9780357671221
Author: FISCHER
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 20, Problem 1UTI
To determine
Concept Introduction:
The net assets held with an individual at the time of his/ her death or incapacitation are referred to as an estate. The planning to manage such assets of an individual is regarded as estate planning.
To define:The importance and goals of estate planning.
Expert Solution & Answer
Explanation of Solution
Many individuals prefer estate planning as it is as per their desires. While estate planning, the accountant or attorney needs to consider two strategies i.e. estate taxes and gift-giving. The person who is responsible forthe management of an individual’s assets by law is regarded as fiduciaries. These fiduciaries prepared an accounting report based on their actions.
Some of the goals of estate planning are as follows:
- Define and communicate the desires of a deceased individual.
- Ensure proper management and administration of estate to satisfy a decedent’s desires.
- Enhance the value of existing assets of an individual before death by proper planning.
- Reduce the value of taxes that may be assessed against the income or estate.
- Proper accounting of the estates on a timely basis.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Estate planning is becoming more important to many individuals. Identify several goals of estate planning.
Propose ethical suggestions to reduce estate tax and gift taxes on property transfers.
In estate planning, setting ul a trust account in the name of beneficiaries may help to _______
a. Improve the faith of the beneficiaries
b. Maximise the estate tax obligation
c. Protect the beneficiaries against future inflation
d. Protect the beneficiaries from the creditors of the donor
Chapter 20 Solutions
ADVANCED ACCOUNTING
Knowledge Booster
Similar questions
- Classify the type of expenditure in the following transactions. Tuition paid by your parents is _______. A new office building is _______. A. consumption expenditure; consumption expenditure B. investment; investment C. government expenditure; investment D. consumption expenditure; investment Thank you!arrow_forwardCan someone give me their input on this question please. Discuss housing affordability in general. When researching your response consider the following: personal income, housing prices, mortgage rates, nonmortgage expenses, and also personal/mental/social positives and negatives of owning vs renting.arrow_forwardProvide an explanation of the current federal estate tax law. Create a brief scenario using a hypothetical client who may need estate tax planning services soon. Provide a rationale for your responses.arrow_forward
- Discuss the ethical implications of the estate, inheritance, and gift taxes.arrow_forwardAssume Louise has inherited a large sum of money and wish to use it to make a real estate investment. She is a working professional in her late 30s. a. Would you recommend her to invest in income property or speculative property? Why? Describe the key characteristics of the income or speculative property on which she would focus her search. b. Louise has studied economics and knows about demand and supply, yet she doesn’t understand how to apply them to an investment analysis. Advise Louise in a practical way, how she might incorporate demand and supply into an investment analysis of property investment?arrow_forward1. What do you think about estate taxes at the state level? How do we see this play out with retirees? 2. How does the Estate Tax affect the Business valuation/estate planning industry?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Pfin (with Mindtap, 1 Term Printed Access Card) (...FinanceISBN:9780357033609Author:Randall Billingsley, Lawrence J. Gitman, Michael D. JoehnkPublisher:Cengage Learning
Pfin (with Mindtap, 1 Term Printed Access Card) (...
Finance
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning