Your 80-year-old uncle has an estate valued at over $10 million and asked for your advice...

Your 80-year-old uncle has an estate valued at over $10 million and asked for your advice regarding how to make sure that each of his heirs receives certain assets and that estate taxes are minimized. What steps would you recommend? Be sure to address such issues as wills, trusts, gifting, and probate.

Expert Solution

As m80-year-old uncle has an estate valued at over $10 million.

My suggestions would be to

1. Move a portion of the asserts for the beneficiaries while your uncle is alive. He can keep just the advantages that he requires for an incredible rest and afterward move different resources for his beneficiaries when he is alive

2. Make a living trust as against a will so the charges can be limited upon uncle's passing. The living trust despite the fact that is entangled can decrease charge that must be paid if there should arise an occurrence of will. A prepared lawyer can help your uncle right now.

3. Check whether uncle is hitched. In the event that he is hitched he can move the entirety of his resources for his better half since all the advantage move to the spouse isn't liable to burden. At that point request that his significant other exchange the advantages according to his desires

4. Moving to specific expresses that have lower bequest charges than others. He can move to that state and afterward make a definite domain intend to move the riches that was made.

ekkarill92 answered 2 years ago

A real estate investor has bought an office building valued at $100 million. After a 10%...

A real estate investor has bought an office building valued at $100 million. After a 10% down payment for the property price, the investor has borrowed a one-year mortgage loan at 10% interest rate from Nopay Bank to finance the remaining purchase price. The credit rating of the investor is ABB indicating that his probability of default is 3%. The current market value of the office building is $100 million. The office building is pledged with Nopay Bank as collateral....

Your 21-year old niece, who is graduating from college next month, asked for your advice –...

Your 21-year old niece, who is graduating from college next month, asked for your advice – should she: A.Invest $5,000 per year into her retirement fund (9 payments) from age 22 – 30? Or B. wait until she turns 31 and invest $5,000 every year through age 65 (35 payments)? please show work :)

Your uncle calls and asks for your investment advice. Currently, he has $100,000 invested in a...

Your uncle calls and asks for your investment advice. Currently, he has $100,000 invested in a risky portfolio. This portfolio has an expected return of 10.5% and a volatility of 8%. Suppose the risk-free rate is 5% and the market portfolio has an expected return of 18.5% and a volatility of 13%. To maximize your uncle’s expected return without increasing his volatility, what investment strategy would you recommend? If your uncle prefers to keep his expected return the same, but...

If your uncle borrows $56,000 from the bank at 10 percent interest over the eight-year life...

If your uncle borrows $56,000 from the bank at 10 percent interest over the eight-year life of the loan. Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. How much of his first payment will...

For the purpose of this assignment, your uncle has decided to retire and has asked you...

For the purpose of this assignment, your uncle has decided to retire and has asked you to take over his Bed and Breakfast Inn (B&B). It is currently organized as a sole proprietorship and has fairly regular annual repeat customers (mostly families on vacation). Review and answer the following questions: What changes do you think you might implement to make the B&B more successful? Would you stay with a sole proprietorship? Why? If you are going to change the type...

The common stock and debt of Northern Sludge are valued at $120 million and $80 million,...

The common stock and debt of Northern Sludge are valued at $120 million and $80 million, respectively. Investors currently require a 14% return on the common stock and an 8% return on the debt. Assume that the change in capital structure does not affect the risk of the debt and that there are no taxes. If Northern Sludge issues an additional $15 million of common stock and uses this money to retire debt, what is the expected return on the...

Bethany Lutrell’s uncle has asked her to take over the family poultry processing plant.

Bethany Lutrell’s uncle has asked her to take over the family poultry processing plant. Provide Lutrell, who graduated in engineering, answers to the following issues: a. What are the important questions to be answered about joint processes in a poultry processing plant? Also indicate the points in a joint process at which these questions should be answered. b. How should joint costs be used in managerial decision making? When and why might a joint cost be used inappropriately in decision...

You have inherited $1.6 million from your old uncle. What is the present value of this...

You have inherited $1.6 million from your old uncle. What is the present value of this cash flow if you receive it at the following times? 1. Suppose the right discount rate from the market is 3%. (a) Now. (b) In 5 years. (c) In 10 years. (d) In 50 years. 2. Suppose the discount rate now rises to 8%. (a) Now. (b) In 5 years. (c) In 10 years. (d) In 50 years.

The producer of X is contemplating a price change and has asked for your advice.

The producer of X is contemplating a price change and has asked for your advice. After some empirical investigation, you conclude that the price elasticity of demand for X is 1.25. As an economist, what would you advise the producer to do in order to raise total revenue? Would you advise him to raise prices or lower prices of good x? Why? Explain.

your friend has a food truck business and has asked your advice on using social media...

your friend has a food truck business and has asked your advice on using social media to promote his business. What direction would you offer? Thoroughly explain which social media tools(at least 3) he should use and how?

Question