Which,if Any,of the Following Procedures Reduces Both Ned's Gross Estate

question 38

Multiple Choice

Which,if any,of the following procedures reduces both Ned's gross estate and probate estate?

• A)Five years ago, Ned made a gift of an insurance policy on his life to his daughter (the designated beneficiary).
• B)Four years ago, Ned named his wife as the designated beneficiary of his IRA. (Previously, Ned's estate was the designated beneficiary.)
• C)Using her funds, Ned's wife purchased real estate listing herself and Ned as "tenants by the entirety with right of survivorship."
• D)Ned purchased a CD listing title as "Ned, payable on proof of death to Eileen." Eileen is Ned's niece.
• E)None of the above.

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Definitions:

Expert Power

Authority or influence derived from possessing knowledge or skills in a particular area.

Physical Resources

Tangible assets such as buildings, machinery, and raw materials that an organization uses to conduct its business.

Visibility

The degree to which an entity's presence, actions, or status is known and perceivable by others.

Contingency

The dependence on chance or on the fulfillment of a condition; in management, it refers to the idea that there is no one best way to organize or lead, and that it will depend on various situational factors.