Question
When Harry created his will in 1985, he left his antique car collection, valued at $250,000, to his eldest son, Rod. At the same time,
When Harry created his will in 1985, he left his antique car collection, valued at $250,000, to his eldest son, Rod. At the same time, Harry's will provided for his Registered Retirement Savings Plan (RRSP), also valued at $250,000, to pass to his youngest son, Andrew. The residual balance of the estate was to be divided evenly between Rod and Andrew. When Harry fell ill in 1998, he disposed of the antique car collection. Harry died this past year. At the time of Harry's death, his RRSP assets were valued at $347,000, with the remainder of his net estate valued at $650,000. The will created in 1985 was accepted as his last will and testament, with no changes having occurred since it was originally signed. Based on this scenario, which of the following statements is true? Question 17 options: Andrew will receive the full value of the RRSP assets but will automatically become responsible for any income taxes arising from the disposition Because the antique car collection no longer exists within the estate; it is removed as a bequest Rod and Andrew will share equally in the estate including an equal split of the RRSP assets Since the antique car collection was disposed of prior to Harry's death, Rod will automatically receive $250,000 from the estate as a substitute item
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