which of the following is a typical cash need of the estate course hero

Does an estate need cash to pay for life insurance?

Mar 03, 2016 · 12) Which of the following is/are a typical cash need(s) of one's estate? A) Funeral expenses B) Legal fees C) Outstanding debt D) Estate and inheritance taxes E) All of the above Answer: E Diff: 2 Topic: Estate Planning AACSB: Analytical Thinking 13) All of the following are commonly used estate planning tools except A) a will.

Which estate will most likely have the greatest liquidity problem?

Feb 01, 2019 · Est Plan Quiz 11.docx. See Page 1. All the following statements describe benefits of a typical buy-sell agreement, EXCEPT: A) It provides the surviving owners with the option to buy the deceased’s business interest. B) It provides liquidity to the deceased’s estate for paying death taxes and other debts. C) It provides for continuation of ...

When does an executor sell an estate's assets?

11. Relevant cash flows for net present value (NPV) models include all of the following except A. outflows to purchase new equipment B. depreciation expense on the newly acquired piece of equipment C. reductions in operating cash flows as a result of using the new equipment. D. cash outflows related to purchasing additional inventories for another retail store.

What happens when the estate sells the real estate?

Attempt 2 Written: Nov 1, 2020 4:31 PM - Nov 1, 2020 4:55 PM Submission View Released: Dec 7, 2017 1:39 PM 5 / 5 points Carey is a widow with two teenagers, Brenda age 13 and Terry age 15. Her health has declined and she knows that a will should be drafted. Which of the following statements is not an important reason to have a will? Question options: Without a will the court …

How long does it take to sell real estate after death?

The real estate sold within three months of the decedent's date of death would not generally create any income tax consequences because the fair market value on the estate tax return of that piece of real estate would be that sales price.

Is the principal of a loan a debt?

The principal of the loan is a debt on the estate tax return. The correct answer is d. The principal of the loan is not a debt on the estate tax return. The estate tax return would only include those debts that existed at the date of his death.

Does an estate need cash to pay for life insurance premiums?

To pay funeral and administrative expenses and the executor's. The correct answer is c. Generally, an estate does not need cash to pay the premiums on a life insurance policy for the decedent since the decedent is dead. All of the other options are reasons an estate will have liquidity concerns.

Is the ILIT tax included in Amy's estate?

The correct answer is a. Answer a is false statement. Since Amy was only making cash contributions to the trust, the value of the ILIT will not be included in Amy 's gross estate. If Amy had to pay any gift tax on the contributions to the ILIT, the gift tax paid on the contributions would be included in her gross estate.

Is selling assets deductible on estate tax return?

Any selling expenses are deductible on the estate tax return. The correct answer is c. Any losses on the sale of the assets are income tax losses and are deductible on the estate's income tax return, not on the estate tax return. All of the other answers are true statements.

Do you need cash to pay funeral expenses?

Click card to see definition 👆. Tap card to see definition 👆. The correct answer is c. Generally, an estate does not need cash to pay the premiums on a life insurance policy for the decedent since the decedent is dead.

Is interest on a loan used to pay estate taxes deductible?

The interest on a loan used to pay estate taxes is deductible by the estate. Answer b is a false statement as the property is reported on the estate tax return at the fair market value at the decedent's date of death, or the alternate valuation date.