John Doe's Will States That All Assets He Had Should

question 39

Essay

John Doe's will states that all assets he had should be transferred to a trust to cover living expenses for his spouse,who he feels will not be able to handle her own financial affairs without advice and supervision.Upon his spouse's passing,the trust will be converted to cash and distributed to their only daughter,Jane.The probate court already ruled on which assets could be excluded from the estate,and all tax issues were addressed,leaving the following inventory of assets from the estate:
$$\begin{array} { | l | r | r | } \hline \text { Asset } & \text { Cost } & \text { Fair Value } \\ \hline \text { Cash } & 206,000 & 206,000 \\\hline \text { Certificates of Deposit } & 250,000 & 250,000 \\\hline \text { Investments/Mutual Funds } & 354,116 & 2,780,500 \\\hline \text { Residence } & 34,000 & 190,000 \\\hline \text { Ocean front cottage } & 78,000 & 560,000 \\\hline \text { Pepper mill collection } & 2,070 & 3,900 \\\hline\end{array}$$ Required:
Prepare the journal entry for the creation of the trust.

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Definitions:

Netnography

A research methodology that adapts ethnographic techniques to study the cultures and communities that emerge through the internet.

Sampling Types

Different methodologies used in statistical analysis for selecting a subset of individuals or items from a population to estimate characteristics of the whole population.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Nonprobability

A sampling technique where elements of the population do not have a known or predetermined chance of being selected.