Aaron Owns a Certificate of Deposit with Beth,his Sister,and an Apart?ment

question 16

Essay

Aaron owns a certificate of deposit with Beth,his sister,and an apart?ment building with Carl,his brother,in both cases as a joint tenant.Aaron,a partner with Debra in Aaron & Debra Accountants,obtains a life insurance policy with Debra as the designated beneficiary.Aaron writes a will that gives particular items of personal property,as well as specific amounts of cash,to his children and his friends.The will leaves the residue of the estate to Eve,Aaron's favorite cousin.Carl dies.Aaron,on his own deathbed,makes a gift to the United Way.Will the certificate of deposit,the apartment building,the proceeds from the life insurance policy,and the gift to the United Way become part of Aaron's estate and be distributed under the will? If not,how will these items be distributed and to whom?

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Definitions:

Dollar-Weighted Return

A method of calculating an investment's return that considers the timing and amount of capital inflows and outflows.

Dividend

A portion of a company's earnings distributed to its shareholders, usually in the form of cash or additional stock.

Sharpe Measure

A measure for calculating the performance of an investment compared to a risk-free asset, after adjusting for its risk, often used to understand the risk-adjusted return.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher volatility than the market.