Lydia's Father Has Named Lydia in His Will as the Inheritor

question 48

Multiple Choice

Lydia's father has named Lydia in his will as the inheritor of his farm. He has also named her as a beneficiary in his insurance policy. Lydia is:

• A) a donee beneficiary.
• B) an incidental beneficiary.
• C) the assignee by novation.
• D) a creditor beneficiary.

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Definitions:

Disposable Income

The amount of money an individual or household has available to spend or save after taxes and necessities have been paid.

Interest Rates

The percentage charged on borrowed money or paid to investors, which reflects the cost of borrowing or the return on investment.

Discretionary Income

The amount of an individual's income left for spending, investing, or saving after all taxes and necessities have been paid.

Luxury Items

High-end products or services that are not essential but are desired for their quality, status, and aesthetic appeal, often associated with a higher price.