When Considering Holding Assets as Joint Ownership with Rights of Survivorship

question 32

Multiple Choice

When considering holding assets as joint ownership with rights of survivorship for estate planning purposes,it is important to understand

• A)that capital gains taxes will be deferred on this transaction until the survivor passes.
• B)how the spousal roll-over rules will impact capital gains taxation.
• C)the implications of giving up your decision making power over the asset.
• D)that naming a child as a joint owner of your principal residence will trigger capital gains taxes.

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Definitions:

Surplus

The amount of an asset or resource that exceeds the portion that is actively utilized; in economic context, it often refers to excess production or budgetary surplus.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or commodity, often to protect consumers.

Price Floor

A government or regulatory-imposed minimum price set for a particular good or service, below which it cannot be sold, often to protect producers or encourage production.

Surplus

The situation in which the quantity of a good or service supplied exceeds the quantity demanded at the existing price.