Question

Rafi retired from government service with a full pension. Ten years later he passed away, leaving behind a valid will. Aside from his personal belongings, the assets of his estate include his home, several defined contribution retirement accounts, a permanent life insurance policy, and checking and savings accounts at a local bank.
Required:
1. Which of these assets is most likely to be distributed according to the provisions of his will?
A. the retirement accounts
B. the life insurance
C. The house
D. the bank account
E. the pension plan

Answer 1

Answer:

“The House” is the asset which is most expected to be distributed permitting to the requirements of his will of Rafi

Explanation:

Therefore the house is the only asset that can be distributed to the relatives or the individuals nominated in the will but in contrast to this the accounts and the insurance policy holds the nominee of a person and after the death of Rafi they only be handed over to the nominee which is appointed by the Rafi.

Answer 2

Answer:

Will is written document that shows how properties of a person should be administered after he dies to prevent the administration of Court from interfering to the distribution of such properties.

The answer is C. The house. The house is the asset that is most likely to be distributed according to the provision of the will.

Explanation:

Life insurance benefit cannot be provision of will. The distribution of benefit is already been agreed by the life assured at the beginning of the contract, hence stated in the Policy document.

Benefit from Retirement account cannot be distributed by Will provisions, the account already has the Required Next of kin that proceed will be paid to incase of death of account owner.

Bank account proceed willl also be distributed according to information of Next of kin provided by the Account holder before he dies according to percentage if the Kin are more than one.

Pension plan is similar to Retirement Plan if not the same. A provision have been made right from outset of the contract that provide the number of Kin and percentage applicable to them. In this case, the proceeds will be given to them without the need of Will provision as it has been agreed at the outset when the account holder was alive.