ESTATE PLANNING Final Examination Spring 2006 Professor Ford Directions: Please
ID: 2576082 • Letter: E
Question
ESTATE PLANNING Final Examination Spring 2006 Professor Ford Directions: Please write on only one side of a page in the answer booklet. Skipping lines may be beneficial for you should you deeide to make a change in your answer and need space to insert writing between lines. You are cautioned to read all questions fully before beginning. Thereafter, you should approach each question by making an outline of your answer so as to best organize your response. You may write your outline in a separate booklet. The outline is for your purposes and wil not be considered any part of the examination answer. Pass in every booklet in which you write plus the exam sheels, inserting booklets one inside the other, after having written your student identification number as well as the course title on the front of each booklet Issue identification and discussion are most important. You are cautioned to follow an orderly, step-by-step pattern of analysis and response. This will help keep you on track and better allow me to understand your analysis and answer. Answer only the questions that are asked. You will have three hours to complete this exam QUESTIONS: Question 1-27 minutes 15% Emily Jackson, a new client, has asked you about probate avoidance planning with regard to her property. She wants to know whether it is advisable in her case, and if so, what are its advantages and disadvantages, if any. Emily is 47 years old, divorced and mother of a daughter Amy, 25 years old, and a so, Glenn, 20 years old. She owns a personal residence with a mortgage, has a small IRA, and modest additional savings How do you respond to Emily regarding her probate avoidance question?Explanation / Answer
Yes, it is advisable in Emily’s case to go for probate avoidance planning with regards to her property. This is because by going for probate avoidance planning Emily can make sure that correct people inherit her property. Emily has a 25 year old daughter and a 20-year old son. In all likelihood she will want them to inherit her property and this is where probate avoidance planning will help her in ensuring her that her son and daughter inherit her property.
By doing probate avoidance planning in advance Emily can save the expensive as well as time consuming exercise that her son and daughter will have to undertake upon her death.
Disadvantages of such planning are limited and as Emily do not need a living trust to meet her estate planning objectives she should definitely go for probate avoidance planning as it will also help her to avoid all possibilities to invite a will contest.
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