You have been notified by the family attorney that you are the sole heir to your lost uncle's estate. You have two options for receiving the inheritance: receive $500,000 at the end of each of the next 10 years or receive a lump sum payment of $2,500,000. Determine which is the better option.
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You have been notified by the family attorney that you are the sole heir to your lost uncle's estate. You have two options for receiving the inheritance: receive $500,000 at the end of each of the next 10 years or receive a lump sum payment of $2,500,000. Determine which is the better option.
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- Jude and Kyra have a withdrawal right in trust that allows them to withdraw one-half of the assets transferred to the trust each year within a 30 day period. This year, their mother transferred $80,000 to the trust and neither child withdrew any money. What is the gift consequence of this lapse?Rich Uncle died on March 1, 2020, and left you his mansion. Additional facts: The mansion was worth $4 million on March 1, 2020 The mansion was worth $4.2 million six months later (September 1, 2020). The mansion was worth $4.25 million on October 15, 2020, the date on which you finally received the deed from Uncle’s executor. Uncle’s executor did not elect the alternative valuation date. Your tax basis in the mansion is $___. Explain why.Bob died in 2020. He left an estate worth $20,000,000, a surviving spouse, and a two trust will which creates a marital trust and a credit shelter trust, how much property should go into each trust to minimize the estate taxes at Bob's death and at the death of the surviving spouse? $10,000,000 into each trust. $20,000,000 into the marital trust and nothing into the credit shelter trust. Approximately $11,500,000 into the marital trust and approximately $4,500,000 into the credit shelter trust. Approximately $11,500,000 into the credit shelter trust and the balance of the estate into the marital trust.
- Your 80-year-old uncle has an estate valued at over $10 million and asked for your advice regarding how to make sure that each of his heirs receive certain assets and that estate taxes are minimized. What steps would you recommend? Be sure to address such issues as wills, trusts, gifting, and probate.Your grandmother left you an inheritance that pays $440 at the end of each year for a total of 12 consecutive years. However, because of your young age, the payments will not begin until the end of 5 years. If the interest rate is 3.00%, what is the equivalent value of your inheritance today?Bilbo plans to retire in 25 years (t=25) from today and to save $4,000 per month until his retirement with the first saving starting from today (t=0). He expects to have $2,000 monthly expense starting from the first month after year 25 (t=25) through year 50 (t=50). He also wants to leave an amount of inheritance to his son Frodo at year 50 (t=50). The discount rate for Bilbo’s entire life is 6% (APR). Suppose Bilbo strictly follows his financial plan, a) how much savings would Bilbo have in year 25 (t=25)? b) how much at most would Bilbo’s inheritance be in year 50 (t=50)? no excel please
