Yuliya's mother Larisa passed away peacefully at the age of 83. Larisa was a widow for several years but had lived a great life. Larisa worked hard during her working years and managed to accumulate assets valued at $2 million, including her home in Ontario valued at $600,000 and a life insurance policy with a face amount of $100,000 (Yuliya is the named beneficiary on the policy). In addition to Larisa's Will, she also had a Letter of Last Instruction. Which statement is false?

Question 27Select one:

a.

Since Yuliya is the named beneficiary of the life insurance policy, it means the policy does not form part of the estate, thereby reducing the value of Larisa's estate subject to probate fees.

b.

Deemed disposition on Larisa's death means her estate must sell her assets.

c.

Larisa's Letter of Last Instruction describes her funeral arrangement preferences as well as indicating where her key financial documents are located.

d.

Larisa is deemed to have disposed of her assets on the date of death.

e.

The deemed disposition of Larisa's principal residence will not trigger a capital gain or loss.