The Mini Case Study Narrative: Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

The Mini Case Study Narrative: Case Solution

For Questions 7 to 10 please add the following information:

In January of the year 2020, Marley goes to Orin’s (her lawyer) office and completes her will naming Jose as the executor and Paige as the person to whom she bequeaths all of her estate’s assets. She has two witnesses sign the will and leaves the original with her lawyer.

In March of 2020, Marley and Paige decide to get married. Paige moves into Marley’s condominium and they make it their matrimonial home. Marley makes no other changes to her estate plan and still remains the only person on legal title of the condominium.

In June of 2020, Marley and Paige take the trip to Faro, Portugal as their honeymoon.

Paige has a life expectancy of another 40 years.

Current conservative interest bearing investments are earning a nominal annual rate of return of 3%. The expected price appreciation in any real estate is anticipated to stay at the rates currently experienced by Marley.

All of the other information in the mini case study remains as stated.

Question 7:

Unfortunately,Marley still becomes ill and succumbs to her illness and dieson December 31 of the year 2020.Which of the following statements is/are true with regard to Marley’s estate?

Because Paige is Marley’s spouse, she will automatically become the executrix of Marley’s estate.
Because the condominium is the matrimonial home, it will automatically bypass Marley’s estate and become the property ofPaige.
Jose will be the one who determines how Marley’s estate will be disbursed in accordance with her will.
The province of Alberta does not recognize same sex marriages somatosensory not have a spouse at the time of her death.
Marley is dying intestate and the intestacy laws of the province of Alberta will apply.
1, 2 and 3 only
3 only
3 and 5 only
2 and 3 only
5 only

Question 8:

Unfortunately, Marley still becomes ill and succumbs to her illness and dies on December 31 of the year 2020. Assuming that the estate takes advantage of all legal tax minimization strategies available, which of the following amounts is correct with regard to the taxable capital gain that Marley’s estate will be liable for?

$0.00
$20,000
$40,000
$150,000
$203,000

Question 9:

Assuming that the estate takes advantage of all legal tax minimization strategies available, what are the tax consequences associated with Marley’s death in relation to her RRSP and TFSA accounts? The deemed disposition of these assets will create a taxable income for her estate of?

$0.00
$35,000
$40,000
$100,000
$140,000

Question 10:

Are there any additional estate planning issues that you would recommend Marley and Paige undertake?

Rationale for your answers (worth 62%)

Writing only in the space provided for each question, please present the rationale for each of your answers. Do not expand the size of the boxes and the minimum font size is 12 point…

Rationale for your answer to Question # 1 (5 marks)

The executor, after the death of the deceased person cannot sign the will on his own. His key responsibilities include: disposing off the assets, securing the assets, paying up for claims, expenses or taxes using the assets of the deceased person. So, based on the key responsibilities of an executor; Joe cannot sign Marley’s will and he can’t manage the assets too, such as” reinvesting the maturing term deposit or renegotiating the car lease agreement. The correct option would be (a), whereby he would be having the authority to take decision about Marley’s health and paying off the medical bills.

Rationale for your answer to Question # 2 (5 marks)

Trustee is a person who has the legal authority to work in the best interests of the third person, while the administrator is appointed if there is an intestacy, i.e. if someone has died without initiating a will or appointing an executor. Since Marley got her draft of will prepared by her lawyer and she also appointed Jose as her attorney, so Jose will automatically assume the executor position of the Marley’s estate. Correct Option – (c)

Rationale for your answer to Question # 3 (5 marks)

As Marley has initiated her draft of the will before her death and her closest relative is Jose, with ownership rights in the property too, so Paige will not be hired by the court as the administrator. Rather, Jose will assume his role as the executor of the will and the preferential share of Marley’sestate will be given to Jose, and he will be having the authority to transact on Marley’s behalf. Correct option – (b)

Rationale for your answer to Question # 4 (5 marks)

According to Tax Planning Guide - Section 11, if a person’s death occurs in between January 01^stand October 31^st, the income tax return and payment for the balance of taxes would be paid till April 30^th of the next year or till July 15^th for business persons. However, if a person dies between November 01^stand December 31^st, the income tax return and payment for the balance of taxes would be paid till June 30^th of the next year. So, both the items are due on June 30^th, 2021 for Marley, according to the section requirements. Correct Option – (g)

Rationale for your answer to Question # 5 (5 marks)

If the property is jointly owned, then taxes are applicable to half of the value and even if the one of owner dies; the capital gains are not exempted, rather the property is still applicable stepped-up tax basis. Secondly, the administrator won’t be appointed by the court as Jose would be the executor and the administrator cannot take the tax decisions on his own. So, Jose will automatically receive the inheritance of the family cottage as well as the condominium, being the closest relative to Marley. Correct option (j)

Rationale for your answer to Question # 6 (5 marks)

Though Marley had prepared a draft will, but it had not been signed and as Marley didn’t have any prior wills in written, it means that she had died intestate. It means that the Wills and the Succession Act would decide on how the estate of the person will be distributed if he/she dies intestate. According to the law of the state of Alberta; the art collection will be disbursed as an asset of Marley’s estate under the provincial jurisdiction of an intestate estate.

Rationale for your answer to Question # 7 (5 marks)

Since Marley and Paige got married and Marley succumbs to her illness and dies on December 31^st of the year 2020, according to the law of the state of Alberta; the application for the matrimonial property orders would be made or continued by the surviving spouse after the death of the other spouse, due to which she will automatically become the executrix of Marley’s estate and because the condominium is the matrimonial home, it will automatically bypass Marley’s estate and would become the property of Paige.

Rationale for your answer to Question # 8 (8 marks)

The taxable capital gains would be $0 with regards to the taxable capital gain that Marley’s estate will be liable for, because of the insufficient information of tax rate, the selling price and the purchasing price of the estate.

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The Mini Case Study Narrative: Harvard Case Solution & Analysis

The Mini Case Study Narrative: Case Solution