Estate-planning purposes, Arlo transfers all of his real

Estate-planning purposes

Assignment Help Other Subject

Reference no: EM13178468

Arlo transfers all of his real estate (worth about $5 million) into an irrevocable living trust, for estate-planning purposes. Arlo is the initial beneficiary of the trust - getting income that is generated from the property rentals, but the trustee has discretion over how much income is actually released to Arlo. His attorney acts as the Trustee for the trust. At Arlo's death, Arlo's daughter, Katrina will take over as beneficiary. When Katrina dies, all of the trust assets will be distributed to her children (Arlo's grandchildren). At the time of this transfer, Arlo has no outstanding debts. Five years after setting up the trust, Arlo is sued regarding a car accident, for which he was at fault. The plaintiff gets a judgment against Arlo for $3 million. Unfortunately, Arlo's liability insurance policy had a limit of only $1 million. The insurance company has paid the plaintiff the full $1 million that they were responsible for. Now the plaintiff wants to get the real estate that Arlo transferred into the living trust five years earlier. Result?

a. The trustee of the trust will have to hand over enough of the real estate to the plaintiff, to cover the remaining $2 million that Arlo owes to the plaintiff.
b. The trustee of the trust will not have to give anything to the plaintiff, because the real estate is no longer in Arlo's name.

Reference no: EM13178468

Questions Cloud

Psychological egoist : Think of an event or a time when you feel you acted unselfishly. According to the psychological egoist, you still had a selfish motive! Explain why the psychological egoist would consider you selfish.

Human error-damage by employees-misuse of computer systems : Select any three of the following security threats described in the textbook (human error, damage by employees, misuse of computer systems, theft, computer-based fraud, viruses, hackers, and natural disasters) and recommend a control for each threat ..

Disregarding the weight of the arms : A person doing a chin up weighs 700 N disregarding the weight of the arms. during the first 25 cm of the lift each arm exerts an upward force of 335 N on the torso. if the upward movment starts drom rest what is the persons speed at this point?

Trustee of the living trust and executor of the will : Juan is a widower, and a resident of Washington, with two children (ages 20 and 18). He enters into a Living Trust agreement on June 1, 2010, naming his attorney as the Trustee.

Estate-planning purposes : Arlo transfers all of his real estate (worth about $5 million) into an irrevocable living trust, for estate-planning purposes. Arlo is the initial beneficiary of the trust - getting income that is generated from the property rentals, but the trustee ..

Illegal discrimination and loss of consortium : James goes to work for Tupac, Inc., a local construction company, as a salesperson. Tupac, Inc. provides James with a computer and internet connection as part of the job.

Contemporary moral issue : Choose a contemporary moral issue in any society and apply the ethical doctrine of Utilitarianism to defend this issue.

Despite the cultural domination : Despite the cultural domination instituted by European traders and colonizers, how do you think these Mesoamerican, South American, and African societies have been able to sustain their cultural practices?

Engaged in performing some task : According to the Yerkes-Dodson Law, the two variables that one must take into account when engaged in performing some task are :

User Account

All Pages