Trudy has just recorded a deed that gives her daughter, Sally, a life estate in the family farm plus a general power of appointment over the farm. Which is a CORRECT statement regarding the property interests given to Sally? A) A disadvantage of the life estate is that it is a contingent interest. B) A disadvantage of the general power of appointment is that Sally will not be able to appoint the remainder interest in the property to herself. C) A disadvantage of the life estate is that it is a future interest. D) An advantage of the general power of appointment is that Sally will be able to become the sole owner of the farm.
Trudy has just recorded a deed that gives her daughter, Sally, a life estate in the family farm plus a general power of appointment over the farm. Which is a CORRECT statement regarding the property interests given to Sally? A) A disadvantage of the life estate is that it is a contingent interest. B) A disadvantage of the general power of appointment is that Sally will not be able to appoint the remainder interest in the property to herself. C) A disadvantage of the life estate is that it is a future interest. D) An advantage of the general power of appointment is that Sally will be able to become the sole owner of the farm.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Trudy has just recorded a deed that gives her daughter, Sally, a life estate in the family farm plus a general power of appointment over the farm. Which is a CORRECT statement regarding the property interests given to Sally?
A)
A disadvantage of the life estate is that it is a contingent interest.
B)
A disadvantage of the general power of appointment is that Sally will not be able to appoint the remainder interest in the property to herself.
C)
A disadvantage of the life estate is that it is a future interest.
D)
An advantage of the general power of appointment is that Sally will be able to become the sole owner of the farm.
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