A RETIREMENT PLANNING MINI-CASE / TUTORIALOUTLET DOT COM A RETIREMENT PLANNING MINI-CASE / TUTORIALOUTLET D | Page 10

collects income from the property.
IV. IRD property will be included in the Mayfields’ estates at a step-
up in basis value.
a. I and III only
b. II and IV only
c. I, II, and III only
d. II, III, and IV only
16. Which of the following factors should help drive the Mayfields’
decision to fund a capital preservation approach
of retirement planning compared to a capital depletion method?
a. Their desire to leave a legacy at the death of the second spouse.
b. Their willingness to dedicate additional cash flow today to fund the
higher retirement asset need in the future. c. Their willingness to
decrease their income replacement ratio assumption.
d. All of the above.
17. Calculating the future value of regular savings using a
geometrically varying annuity assumption will tend to
a. reduce the future value of the asset.
b. reduce the tax liability of the asset.
c. increase the future value of the asset.
d. increase the interest rate used to calculate future value.
18. Peter and Ann would like to establish a gifting program for their
grandchildren. They have two desires. First,
they want to implement a strategy that does not allow the
grandchildren to access principal prior to age 21, except
to pay expenses for the welfare of the child. Second, they want to
maintain the maximum flexibility in terms of the
types of assets that they can gift. Which of the following alternatives
meet(s) their desires?
a. A Uniform Gifts to Minors Act account
b. A § 2503(b) trust
c. A § 2503(c) trust
d. All of the above
e. B or c only
19. What is (are) the advantage(s) associated with sugg esting
prepaying the Mayfields’ mortgage at this time?
a. The loss of the interest deduction will require them to claim the