Questions from Personal Finance

Q: A person’s marginal tax bracket includes the sum of the relevant federal

A person’s marginal tax bracket includes the sum of the relevant federal, state, and local income taxes. True or false? Explain.

Q: John discovered a $400 tax deduction. In order to calculate

John discovered a $400 tax deduction. In order to calculate its cash benefit, should he use his marginal or average tax bracket? Why?

Q: Why can tax deferral be so advantageous?

Why can tax deferral be so advantageous?

Q: Why is it preferable to donate appreciated property to a charity rather

Why is it preferable to donate appreciated property to a charity rather than sell it and contribute the cash?

Q: Why set up an irrevocable trust when you can establish a revocable

Why set up an irrevocable trust when you can establish a revocable one that provides you with more flexibility?

Q: Carl and his wife had a total estate of $400,

Carl and his wife had a total estate of $400,000. What estate planning tool would you recommend? Why?

Q: Why is life insurance potentially useful in estate planning matters?

Why is life insurance potentially useful in estate planning matters?

Q: Explain the difference between an executor and a guardian.

Explain the difference between an executor and a guardian.

Q: What is a letter of instruction and why have it?

What is a letter of instruction and why have it?

Q: Howard said he wouldn’t have to pay taxes on the money he

Howard said he wouldn’t have to pay taxes on the money he inherited from his deceased father because it was under the $5.34 million threshold. He promptly withdrew the $900,000 that was in his father’...