When There Are Not Enough Assets in the Estate to Satisfy

question 66

Multiple Choice

When there are not enough assets in the estate to satisfy all legacies in the will, the distribution schedule goes through a process of:

• A) Ademption.
• B) Amendment.
• C) Abatement.
• D) Accretion.
• E) Aggregation.

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Definitions:

Beta

A measure of the volatility, or systemic risk, of a security or a portfolio compared to the market as a whole.

Systematic-Risk Event

An event that affects all securities in the financial market and cannot be mitigated through diversification.

Federal Reserve

The central banking system of the United States, responsible for setting monetary policy, issuing currency, and regulating banks.

Interest Rates

The amount charged by lenders to borrowers for the use of assets, expressed as a percentage of the principal, and typically noted on an annual basis.