Chapter 6

Question 1

In the U.S. a public trust that can last for an unlimited period of time to better serve society.

Answer 1

Charitable Trust

Question 2

Four factors to consider when creating estate growth projections

Answer 2

1. rate of return
2. types of investments
3. age of estate owner
4. assume some investment income will be consumed

Question 3

Allowable deductions from the gross estate (5).

Answer 3

1. allowable debts (such as mortgages)
2. funeral expenses
3. medical expenses
4. administrative expenses
5. losses during estate administration

Question 4

Specific needs for the insurance of elderly lives:

Answer 4

1. estate transfer
2. continuing income
3. funds for final expenses
4. stock repurchase
5. management and protection of accumulated assets
6. changing investments from growth to quality
7. long term care needs