Read the scenario below carefully, and then research the tax issues using CCH Intelliconnect. Answer the following questions in 1-2 double-spaced pages, using the statutes in your own state:
As part of an estate plan for Anna, would you recommend a will, a will with a testamentary trust, or a revocable living trust?
Name the fiduciaries who would need to be appointed as part of Anna’s estate plan.
If Anna were to die first, could she exclude her former husband, Kevin, from becoming the guardian of the person of her minor children? What about the guardian of the property?
Are the children old enough to voice their preference for a guardian?
What other kinds of insurance, if any, would you recommend Anna buy (e.g., homeowners, car, life, disability, health, or long-term care)?
What kinds of investments, if any, would you recommend, e.g., stocks, bonds, certificates of deposit, and IRAs?
Scenario: Anna Walker, age 37, is a single parent who divorced her husband four years ago. Anna has custody of their two children, Debra, age 12, and Ryan, age 8. Anna is a marketing manager for a local retail store. She earns $40,000 per year. The company provides Anna and her dependents with a health insurance plan; a group term life insurance policy worth $30,000; and a 401(k) employee benefit plan to which the company annually contributes 4 percent of her salary. Anna makes contributions of $250 per month to the 401(k) plan and has named her two children the beneficiaries of the plan and her life insurance. Anna has a checking account of $1,400; owns a 2014 Ford; and, after the divorce, has title to a house worth $90,000 with equity of $20,000. She has no other savings or investments.
Anna’s former husband, Kevin Walker, is a salesman who has difficulty keeping a job because of his dependency on drugs. Currently, he sells new and used cars. He has visitation rights with the children but frequently fails to show up. Kevin has been ordered to pay monthly child support of $350, which he has paid sporadically depending on whether he has a job. He is now $5,000 behind in support payments, and Anna has little hope of enforcing payment.
Your assignment should be submitted in a Microsoft Word document and be properly formatted in APA, with a title page and reference list (these do not count towards the page requirement).
The following course outcome will be assessed in the Unit 6 Assignment:
AC561-1: Differentiate between the various estates in property.