The purpose of this assignment is to analyze a situation involving a small business, examine what has been done, and describe what needs to be done.
Bobby (yes, the same Bobby from last week!) and his wife Carla had a great day. Their grandson turned 5 and they were able to go to his birthday party, as were most of the family. It was a wonderful birthday party with happiness all around. On the drive to their second vacation home, Bobby told Carla how much he loved her and loved the family they had raised in a heartfelt extemporaneous speech that would have put Shakespeare to shame. Carla said ‘ditto’ because that was an old inside joke from when they first started dating.
Suddenly a drunk driver ran a red light and smashed into the car! Carla died (there’s going to be death in this course) in Bobby’s arms before the ambulance arrived. Bobby sustained only minor injuries. Carla owned an investment account, retirement account, and recently created a life insurance policy. She was (dead people don’t own anything) also the owner of a yoga studio where she taught most of the classes herself. Carla’s will has a few contradictions to her beneficiary designations.
Instructions:
Beyond the beneficiary designation contradictions, what are some of the estate planning issues that will/might be faced in settling Carla’s estate?
This would be evaluated based on the connections you make between Carla’s estate and some of the estate planning issues will/might be faced.
