Estate-planning purposes

Assignment Help Other Subject
Reference no: EM13178468

Arlo transfers all of his real estate (worth about $5 million) into an irrevocable living trust, for estate-planning purposes. Arlo is the initial beneficiary of the trust - getting income that is generated from the property rentals, but the trustee has discretion over how much income is actually released to Arlo. His attorney acts as the Trustee for the trust. At Arlo's death, Arlo's daughter, Katrina will take over as beneficiary. When Katrina dies, all of the trust assets will be distributed to her children (Arlo's grandchildren). At the time of this transfer, Arlo has no outstanding debts. Five years after setting up the trust, Arlo is sued regarding a car accident, for which he was at fault. The plaintiff gets a judgment against Arlo for $3 million. Unfortunately, Arlo's liability insurance policy had a limit of only $1 million. The insurance company has paid the plaintiff the full $1 million that they were responsible for. Now the plaintiff wants to get the real estate that Arlo transferred into the living trust five years earlier. Result?

a. The trustee of the trust will have to hand over enough of the real estate to the plaintiff, to cover the remaining $2 million that Arlo owes to the plaintiff. 
b. The trustee of the trust will not have to give anything to the plaintiff, because the real estate is no longer in Arlo's name. 

Reference no: EM13178468

Questions Cloud

Psychological egoist : Think of an event or a time when you feel you acted unselfishly. According to the psychological egoist, you still had a selfish motive! Explain why the psychological egoist would consider you selfish.
Human error-damage by employees-misuse of computer systems : Select any three of the following security threats described in the textbook (human error, damage by employees, misuse of computer systems, theft, computer-based fraud, viruses, hackers, and natural disasters) and recommend a control for each threat ..
Disregarding the weight of the arms : A person doing a chin up weighs 700 N disregarding the weight of the arms. during the first 25 cm of the lift each arm exerts an upward force of 335 N on the torso. if the upward movment starts drom rest what is the persons speed at this point?
Trustee of the living trust and executor of the will : Juan is a widower, and a resident of Washington, with two children (ages 20 and 18). He enters into a Living Trust agreement on June 1, 2010, naming his attorney as the Trustee.
Estate-planning purposes : Arlo transfers all of his real estate (worth about $5 million) into an irrevocable living trust, for estate-planning purposes. Arlo is the initial beneficiary of the trust - getting income that is generated from the property rentals, but the trustee ..
Illegal discrimination and loss of consortium : James goes to work for Tupac, Inc., a local construction company, as a salesperson. Tupac, Inc. provides James with a computer and internet connection as part of the job.
Contemporary moral issue : Choose a contemporary moral issue in any society and apply the ethical doctrine of Utilitarianism to defend this issue.
Despite the cultural domination : Despite the cultural domination instituted by European traders and colonizers, how do you think these Mesoamerican, South American, and African societies have been able to sustain their cultural practices?
Engaged in performing some task : According to the Yerkes-Dodson Law, the two variables that one must take into account when engaged in performing some task are :

Reviews

Write a Review

 

Other Subject Questions & Answers

  Premenstrual syndrome and coronary heart disease

Summarize the multi-factorial model and how it relates to the diagnosis of illnesses. Discuss Premenstrual Syndrome (PMS)and Coronary Heart Disease and what role psychology has played in understanding and managing these health problems.

  Types of air pollution-affect human health and environment

What are the different types of air pollution?  How does each of these types of air pollution affect human health and the environment?  What some ways to control air pollution?

  Proper techniques for researching texting

Why is survey appropriate techniques for researching texting and the impact it has on communication and why are other research methods not appropriate?

  Briefly explain the two doctrines

Briefly explain the two doctrines, and give an example of how each one has been applied in Central America.  Select an example of U.S. intervention in a Latin American country. Explain the reasons for the intervention and the outcome.

  Role of intent in criminal la

What is the role of intent in criminal law?

  Explain the osha standard setting process

Explain the OSHA standard setting process (also called as rule-making process) for ‘Permanent Standards'. Write in your discussion observation as to why you think it sometimes takes many years or even decades.

  Universal intellectual standard

What Universal Intellectual Standard do you think you would have the most trouble adapting into your every day life and critical thinking?

  Culmination of the life span developmental process

Analyze late adulthood and the death of an individual as a culmination of the life span developmental process. Address the following:

  Postives and negatives of the current business environment

The world is becoming more complex and more technologically connected globally. In order to compete, organizations and individuals can no longer partition their lives into 40 hour work weeks from “8-5.”

  Guilty pleas-drawbacks and negotiating pleas

What are the benefits of guilty pleas? What are the drawbacks? What are some reasons for negotiating pleas?

  Highway crest vertical curve

An 800 ft vertical curve with equal legs is provided for a highway crest vertical curve. The grade of the back tangent is 2% and the grade of the forward tangent is negative 2%. The elevation of PVI is 1200 ft. Compute the elevation of PVC.

  Women and life problems

Write some information for me on a research paper I need for the 30th of September the topic is on women and my topic was Life Problems,

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd