Question 1

The Normal’s need an Estate Plan. Please recommend the basic documents and entities they should consider putting into place. Discuss the reasoning behind your recommendations.

Answers

Statements of the profits together with those of losses made that is income statements and balance sheet.Also, statements concerning cash flow should be put into consideration.

The reasoning behind the above-recommended documents is because they in meeting one’s needs. Besides, they serve as a tool of communication as they can be referred from time to time.

Question 2

For each asset on their balance sheet, please identify “how” it should be owned. Include, where appropriate the beneficiary for each asset.

Answers

Checking. This can be owned by converting those cash into a property such as a house for rental purposes. The beneficiaries will be their children in the future.

Savings: under this, they can be owned by establishing markets for them like opening a shop or any other income generating source. Their children are the major beneficiaries.

Rental property. If neither of them owns this property, it should be bought for it to be held and in this connection, the beneficiaries will be their children.

Employee stock purchase plan. This can be owned by purchasing the stock and planning how to make profits out of it(Coe et al., 775). The beneficiaries will be the nearby residents and at the same time their children.

Primary residence. Under this, there is need to avoid mortgage rates needs by making sure the house, room, or the apartment is near the working place for the rate as mentioned above to go down (Coe et al., 767). By so doing, it will have been owned, and its beneficiaries are preferably their children.

401(k) D airlines. It can be held by purchasing the whole airline company to operate in his or her direction. Children are the primary beneficiaries as they will inherit them in the future.

Question 3

Assuming they purchased a $3, 000, 000 life insurance policy on Ned and a $500, 000 on Nelly, please identify how each policy should be owned and who to name as beneficiary (ies).

Answers

How Ned’s life insurance should be owned and the beneficiaries.

It should be owned by determining the insurance interests to be earned from his purchasing amount. Also, by knowing the percentage of each beneficiary should get to avoid clashes(Coe et al., 772). Besides, the list of beneficiaries should be provided. The beneficiaries will probably be his children.

How Nelly’s life insurance should be owned and the beneficiaries.

On how Ned’s life insurance has been owned, the same follows for Nelly’s as illustrated below; it should be held by determining the insurance interests to be earned from his purchasing amount. Also, by knowing the percentage of each beneficiary should get to avoid clashes. Besides, the list of beneficiaries should be provided. The beneficiaries will probably be her children.

Work Citation

Coe, Neil M., Karen PY Lai, and Dariusz Wójcik. “Integrating finance into global production networks.” Regional Studies48.5 (2014): 761-777.

 
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