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The beneficiary of a will has received a house and surrounding propert

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The beneficiary of a will has received a house and surrounding propert  [#permalink]

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New post 27 Sep 2018, 00:51
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  15% (low)

Question Stats:

84% (01:19) correct 16% (01:29) wrong based on 64 sessions

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The beneficiary of a will has received a house and surrounding property. Since he already owns a home, he is considering selling the house and property and investing the proceeds from the sale in municipal bonds in order to help provide for his retirement.

Which of the following, if true, is the most appropriate reason for the beneficiary NOT to sell the house and property he inherited?


A. The municipal bonds that the beneficiary is planning to buy with the proceeds from the sale of the house and property will gain less in value by the time of his retirement than would stocks purchased for the same amount of money.

B. The state taxes all benefits from wills, including property benefits, according to their current appraised market value.

C. The house and property are likely to appreciate more in monetary value by the time of the beneficiary's retirement than will the municipal bonds bought by the proceeds from the sale of the house and property.

D. He already has a retirement plan at his place of employment that will be worth more at his retirement than the municipal bonds he plans to purchase.

E. The house and property inherited by the beneficiary are worth more than the home he already owns.

Source: Kaplan Test
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Re: The beneficiary of a will has received a house and surrounding propert  [#permalink]

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New post 27 Sep 2018, 03:30
sandman13 wrote:
The beneficiary of a will has received a house and surrounding property. Since he already owns a home, he is considering selling the house and property and investing the proceeds from the sale in municipal bonds in order to help provide for his retirement.

Which of the following, if true, is the most appropriate reason for the beneficiary NOT to sell the house and property he inherited?


A. The municipal bonds that the beneficiary is planning to buy with the proceeds from the sale of the house and property will gain less in value by the time of his retirement than would stocks purchased for the same amount of money. Incorrect, we need to compare bonds with property and not with stocks.

B. The state taxes all benefits from wills, including property benefits, according to their current appraised market value. Incorrect, out of scope, no mention of taxes in the passage.

C. The house and property are likely to appreciate more in monetary value by the time of the beneficiary's retirement than will the municipal bonds bought by the proceeds from the sale of the house and property. Correct, this option aptly compares the net worth of the property and the bonds after the retirement.

D. He already has a retirement plan at his place of employment that will be worth more at his retirement than the municipal bonds he plans to purchase. Incorrect, even if the man has a retirement plan doesn't mean that he can't have another one.

E. The house and property inherited by the beneficiary are worth more than the home he already owns. Incorrect, no comparison of net worth of the assets after the retirement.

Source: Kaplan Test


IMO C.
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Re: The beneficiary of a will has received a house and surrounding propert  [#permalink]

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New post 27 Sep 2018, 05:33
here only option C is telling why he should not sell the property to buy bonds.
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Re: The beneficiary of a will has received a house and surrounding propert  [#permalink]

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New post 27 Sep 2018, 07:54
Hi. My query was regarding option B. Doesn't B weaken the argument by pointing out a negative to the owner?
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Re: The beneficiary of a will has received a house and surrounding propert &nbs [#permalink] 27 Sep 2018, 07:54
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The beneficiary of a will has received a house and surrounding propert

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