Fact Pattern 20-1 Mary's Home Is in a State That Has a $30,000

question 36

Multiple Choice

Fact Pattern 20-1
Mary's home is in a state that has a $30,000 homestead exemption.Mary de-faults on a $60,000 debt that she owes to Nina.Mary's home is sold at auc-tion for $80,000.
-Refer to Fact Pattern 20-1.Other property Mary may own that may be ex-empt from satisfaction of judgment debts includes

• A)any property that Mary wishes to exempt.
• B)investments that Mary has made in her family's businesses.
• C)recreational vehicles that Mary uses on weekends.
• D)tools that Mary uses in her trade.

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Definitions:

Unrestricted

Refers to funds or resources that are not subject to externally imposed restrictions and can be used by the organization for any purpose.

Donated

Items or assets that are given without any expectation of payment or benefit in return.

Endowment Fund

Financial assets donated to institutions or organizations with the stipulation that the funds are to be invested and the principal remains intact.

Restricted Fund

Denotes funds that are earmarked for a specific purpose by donors or grantors, limiting their use to certain activities or projects.