Which of the Following Statements About the Review of Estate

question 73

Multiple Choice

Which of the following statements about the review of estate plans is true?

• A) Estate planning and review is a very simple process that doesn't require professional assistance.
• B) Periodic reviews and revisions are required to update the plan.
• C) Life events like disability and job change do not influence the review of estate plans.
• D) Estates are exempted from taxes when there is an intestacy, which makes a review process redundant.
• E) Transfer costs are not applicable to the transfer of estates and, therefore, will not affect the review plan.

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Definitions:

Internal Rate Return

A financial metric used to evaluate the profitability of investments, representing the discount rate that makes the net present value of all future cash flows equal to zero in a different phrasing.

Cash Flows

The collective amount of cash inflow and outflow within a company, significantly determining its liquid resources.

Project Cost

The total expenditure, including all applicable fees and charges, needed to complete a project.

Payback Period

The length of time needed to recoup the initial cost of an investment, measuring the time it takes for an investment to become profitable.