David and Cheryl Allen are in their mid-30s and have two children, ages 8 and 5. They have combined annual income of $95,000 and own a house in joint tenancy with a market value of $310,000, on which they have a mortgage of $250,000. David has $100,000 in group term life insurance and an individual universal life policy for $150,000. However, the Allens haven’t prepared their wills. David plans to draw one up soon, but the couple thinks that Cheryl doesn’t need one because the house is jointly owned. As their financial planner, explain why it’s important for both David and Cheryl to draft wills as soon as possible.
Answer to relevant QuestionsExplain why it is important to set realistically attainable financial goals. Select one of your personal financial goals and develop a brief financial plan for achieving it.Discuss the following statement: “The interactions among government, business, and consumers determine the environment in which personal financial plans must be made.”Assume that you graduated from college with a major in marketing and took a job with a large consumer products company. After three years, you are laid off when the company downsizes. Describe the steps you’d take to ...State the topics you would cover in your ethical will. Would you consider recording it digitally?1. Does Latafat really need a will? Explain why or why not. What would happen to his estate if he were to die without a will?2. Explain to Latafat the common features that need to be incorporated into a will.3. Might the ...
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