Chapter 15 Homework 1. Emilia and Kevin Boyd are in their mid-30s and have two children, ages 8 and 5. They have combined annual income of $150,000 and own a house in joint tenancy with a market value of $410,000, on which they have a mortgage of $300,000. Kevin has $100,000 in group term life insurance and an individual universal life policy for $150,000. However, the Boyds haven't prepared their wills. Kevin plans to do one soon, but they think that Emilia doesn't need one because the house is jointly owned. Explain why it's important for both Emilia and Kevin to draft wills as soon as possible. 2. Camila Ortiz has accumulated substantial wealth and plans to gift some of her wealth to her son Diego. She is considering two assets: a beach house, which cost $300,000 twenty years ago and now has a fair market value of $750,000, and shares in three mutual funds, which cost her $550,000 five years ago and now have a fair market value of $750,000. a. Prepare a memo advising Camila which property to give to Diego. In your memo, consider two scenarios: one where Diego sells the property and one where he does not