In Reference to Estates,which of the Following Statements Is Correct

question 1

Multiple Choice

In reference to estates,which of the following statements is correct?

• A)An estate comes into existence at the death of an individual.
• B)If the deceased person had a valid will at the time of death,he or she is said to have died intestate.
• C)The heir receiving the largest portion of the estate is typically appointed the executor.
• D)Claims may be made for up to seven years against an estate.

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Definitions:

Long-Term

Refers to holding an asset for more than a year before disposal, affecting the calculation of capital gains and losses for tax purposes.

Short-Term Gain

A profit from the sale of an asset held for one year or less.

Investment Portfolio

An assortment of financial assets including stocks, bonds, commodities, cash, and equivalents, such as mutual funds and exchange-traded funds (ETFs).

Preferential Tax Treatment

Special tax rules that result in a lower tax rate or beneficial tax conditions for certain types of income or taxpayers.