Which of the Following Is Not a Feature of a Life

question 48

Multiple Choice

Which of the following is not a feature of a life estate?

• A)Ownership held for a lifetime.
• B)The owner of the life estate can sell the property but cannot bequeath it in their will.
• C)Ownership in the 'remainder' passes after a particular life has ended.
• D)The owner of the life estate is entitled to rent and income from the property during their lifetime.

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Definitions:

Dividends

Cash payouts made by a corporation to its equity holders, usually stemming from the corporate profits.

Discount Rate

The interest rate used to discount future cash flows to their present value, essentially reflecting the opportunity cost of capital.

Present Value

The up-to-date valuation of a future financial sum or cash flow sequence, considering a determined rate of return.

Present Value Factor

A factor used to calculate the present value of a future amount of money or stream of payments, based on a specific rate of return.