Which of the Following Procedures Carried Out Will Reduce Both

question 106

Multiple Choice

Which of the following procedures carried out will reduce both Mary's future gross estate and her probate estate?

• A) Mary issues a timely disclaimer as to real estate that is willed to her by her grandfather.
• B) Mary creates a revocable trust naming her children as the beneficiaries.
• C) One year before her death, Mary gives an insurance policy on her life to her son, the designated beneficiary.
• D) Mary purchases real estate as joint tenants with her sister. Mary predeceases her sister.
• E) None of the above.

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Definitions:

Price Inelastic

This refers to a situation where the quantity demanded or supplied of a good or service changes minimally in response to changes in its price.

Farm Products

Goods that are the result of agricultural activities, including crops, livestock, and the products derived from them.

Total Revenue Test

A method used to assess the impact of price changes on total revenue, analyzing if a product is elastic or inelastic in demand.

Elasticity

A measure of how much the demand or supply of a product changes in response to a change in price.