Replacement cost value of the policy

Assignment Help Finance Basics
Reference no: EM132052023

B.J. owns a single-premium life insurance policy on his wife Cora's life. His will provides that all of his estate will pass to Cora or, if she predeceases him, to their son, Hoss. Assume that B.J. predeceased Cora. Which statement is incorrect?

The replacement cost value of the policy is included in BJ's probate estate.

A marital deduction is available to BJ's estate equal to the replacement cost of the policy.

Hoss is the new owner of the policy.

If BJ had gifted the policy to Cora six months before he died, the policy would not be included in BJ'sestate.

Reference no: EM132052023

Questions Cloud

Present value of annuity : What is the present value of a 4-year annuity, if the annual interest is 5%, and the annual payment is $1,000?
Explore federal agencies that are concern with women health : MN576 Explore federal agencies that are concerned with Women's Health. Which ones may be of benefit to vulnerable women populations.
Computing the return yield on money : He wants to have $30,000 in his 403b in two years. How much should he invest assuming he demands a 4% return (yield) on his money?
Present value of lump sum : Jake wants to invest money into his retirement (403b). He wants to have $30,000 in his 403b in two years.
Replacement cost value of the policy : The replacement cost value of the policy is included in BJ's probate estate.
Solve for the before-tax costs of debt : If I have an existing bond with a coupon rate of interest equal to 5.6 percent (semiannual interest payments), 12 year remaining until maturity
Discuss about advocacy for improving lgbtq health : Describe three political actions nurses could take to strengthen their role in policymaking as it relates to advocacy for improving LGBTQ health.
Give the definition for pierce thecorporate veil in state : BUAD 3470 : Give the definition for "Pierce theCorporate Veil" in each state selected. After you have provided the five definitions.
What is the current ratio : Teri's Photography has total assets of $50,800, fixed assets of $47,400, long-term debt of $36,300, and total debt of $42,900. If inventory is $1,200

Reviews

Write a Review

Finance Basics Questions & Answers

  After 15 years the ship is expected to be sold for scrap

halcyon lines is considering the purchase of a new bulk carrier for 8 million. the forecasted revenues are 5 million a

  What is the value of the stock today

Elliott's last dividend was $1.60 and the required rate of return on the stock is 7%. What is the value of the stock today?

  What the forward rate should be and why

2) Assume PPP is present. The inflation rate in the US is 4% and in Britain it is 11%. The spot ER between the 2 currencies is $/BP1.4. Expound on what the forward rate should be and WHY

  Which method of financing would you recommend

The firm's CEO is deciding whether to issue debt or equity in order to raise the funds needed to finance an upcoming project. Which method of financing would you recommend? Why?

  Explain the advantages for senior management

Define and explain what is meant by independent risk monitoring. How can senior management improve independent risk monitoring?

  Computation of share price that affected by acquisition

Computation of share price that affected by acquisition and expect to happen to the Financial architecture of corporations in these countries over the decade

  What should the shares be trading for today

A company issued preferred shares two years ago, paying a $3.57 dividend, which offered investors an original yield of 7%.

  Purchase a mercedes benz roadster

Q. 1 (Total Marks: 13)Timothy Smith is looking to purchase a Mercedes Benz Roadster, whichhas a total cost of $340,000. Timothy plans to deposit $130,000 and willpay the rest by taking on a 7.5% 5-year loan. Required: a) What is the monthly payment o..

  What is the instrinic value and time value

If an investor buys 1ABC Mar 50 put at 4 when the market is 70. What's the instrinic value and time value associated with this contract?

  Financial statements to potential investors

A client has a business in Iraq. It is 100% owned as a U.S.-owned investment. What are some of the considerations that I need to take in regards to preparing financial statements to potential investors that are based here in the U.S. Also, if the ..

  What subjective factors would affect the investment decision

Assume that the before-tax required rate of return for Deer Valley is 14%. What subjective factors would affect the investment decision?

  Discuss the components of the gentrification project

Why would a Payless ShoeSource store locate in a neighborhood shopping center instead of a regional shopping mall?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd