Schedule A. b. Given their age, they will receive enhanced personal exemptions for this year’ s taxes. c. They can claim a tax credit for gifts made to their grandchild this year. d. The Mayfields’ standard deduction is greater than their itemized deduction. e. Both a and b are correct. 7. During a benefits presentation for all city employees, the presenter talked about the need for those in attendance to think about long-term care needs. Peter was shocked to learn how much one year of nursing home care would cost. He is worried about depleting assets if he or his wife should need this type of care. He wants to know whether he and his wife should purchase long-term care insurance. Which of the following statements best represents the strategy that the Mayfields should consider? a. Purchase long-term care insurance because their net worth, exclusive of home value, is less than $ 1.5 million. b. They do not need long-term care insurance because they can afford to self-insure the costs of care. c. They should expect to spend down assets to a point where they will become eligible for Medicaid, and as such, they do not need long-term care insurance. d. They do not need long-term care insurance because they can use a combination of assets, Medicare funding, and Medicaid reimbursement to fund care needs. 8. Peter was recently approached by a financial adviser who wanted Peter to consider investing in a variable annuity for retirement. A few days later the adviser called Peter again and said that a variable universal life( VUL) insurance policy could also be used to fund retirement needs. Which of the following statement( s) is( are) true in relation to annuities and VULs? I. Given their favorable tax treatment, variable annuities and VUL policies allow earnings to grow tax deferred until withdrawn.