MIS 4500 Lecture Notes - Lecture 16: Monte Carlo Method, Forced Heirship, Inter Vivos

• School: University of Manitoba
• Department: Management Info. Systems
• Course: MIS 4500
• Professor: Pourang Irani

Document Summary

Lecture 16: estate planning in a global context. Trust: vehicle through which an individual (settlor) entrusts certain assets to a trustee who manages the assets; many civil countries do not recognize foreign trusts. Civil law: forced heirship rules: children have right to fixed share of parent"s estate (may exist regardless of estangement or nonmarital) Maybe move assets to offshore trust to avoid. Maybe gift or donate assets during lifetime; some jurisdictions have. Clawback provisions for lifetime gifts: spouses have guaranteed inheritance rights. Community property regimes: each spouse has automatically passing, indivisible 1/2 interest in income earned during marriage (gifts and inheritances received b/f and after marriage are separate property) (other half through will or intestate) Separate property regimes: each spouse is able to own and control property as individual and to dispose, subject to spouses other rights. Core capital: amount of capital required to fund spending to maintain given lifestyle, fund goals and provide adequate reserves for unexpected commitments.