Vince Has Begun Forgetting Things and Is Becoming Very Difficult

question 5

Multiple Choice

Vince has begun forgetting things and is becoming very difficult to get along with.He is 85,has been ill,and is very fond of his housekeeper Annie.He gives a deed to Annie for all of his real property.At Vince's death,his children,who got only his photograph albums according to the will,ask that the deed be set aside and the land be put back in the estate for purposes of division among all the children.What will be the probable result in this case?

• A)Since Vince was 85 he was probably incompetent and the court would rule for the children.
• B)Clearly Annie used her position of dominance to persuade Vince to deed her the property,and it will be set aside.
• C)Unless the children can prove that Vince was unable to understand what he was doing,or that Annie used her position to improperly influence Vince,Annie can keep the property.
• D)Annie will not be able to keep the property since she is not a family member.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Capital Rationing

The process by which a company or organization allocates limited capital resources among various possible projects or investments.

Financial Resources

Assets in the form of money or other valuables that individuals or organizations can use to conduct transactions or invest.

NPV

Net Present Value represents the difference between the present value of cash inflows and the present value of cash outflows over a period of time.