Clarice, Age 90, Has Accumulated $1

question 1

Multiple Choice

Clarice, age 90, has accumulated $1.5 million in net assets.Included in this are three blocks of stock: Stock A has a basis of $300,000 and a fair market value of $400,000; Stock B has a basis of $400,000 and a fair market value of $200,000; Stock C has a basis of $100,000 and a fair market value of 400,000.Clarice needs $200,000 now to pay off the mortgage on her daughter's home and she wants to make a $400,000 donation to her Church either as a lifetime or testamentary transfer.Which assets should she sell to accomplish this with the least current tax cost?

• A)Sell Stocks A and C now.
• B)Sell Stock B and leave stock C to the Church upon her death.
• C)Sell Stock A and leave stock C to the Church upon her death.
• D)Sell Stock C and leave Stock B to the Church upon her death.

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Definitions:

Positive Psychology

A branch of psychology focused on the study of positive human functioning and the factors that contribute to a fulfilling and meaningful life.

Humanism

A philosophical and ethical stance that emphasizes the value and agency of human beings, individually and collectively.

Resilient

The ability to recover quickly from difficulties; toughness or the capacity to bounce back from adverse events.

Collective Unconscious

A concept in Jungian psychology referring to the part of the unconscious mind that is derived from ancestral memory and experience and is common to all humankind.