In SS4, Estate Planning part of Schweser (Book1, p258), there’s a simple example about the “claw back” provision and I just can’t seem to grasp it for some reason and can’t find it in the CFAi text with a similar one.
Could someone please explain this example to me? Why is the estate divided by 3 twice? Since the two original children already have $2,750, why doesn’t the third child just get the remaining $500?作者: prashantsahni 时间: 2013-4-17 16:53
Thanks L3. Just reread the question and found out I was actually confused by the two separate 1/3 numbers. The first one, 33%, is really a mandate of that country for forced heirship, the second one is the real division among the children.
All makes sense to me now, thanks for pointing out my stupidity! I really need to read the question more carefully. (And Schweser shouldn’t have made the numbers so close to each other.)
