Tito was growing old and frail, and he needed help around hi…
Questions
Titо wаs grоwing оld аnd frаil, and he needed help around his house. Being extremely frugal, he did not want to pay for it. Although Tito had a large bank account, the house was the only real property that he owned. Tito was a widower with 3 children who lived far away and rarely spoke to their father. Tito’s neighbor, Bill, realized that Tito was no longer able to move about easily, and he felt sorry for the lonely old man. Out of the goodness of his heart, Bill started running Tito’s errands, mowing his lawn, and making necessary repairs on his home. Tito was extremely grateful, and over the succeeding months he frequently mentioned to Bill that he wanted him to have the house “when he was gone.” Bill knew Tito’s children, and he believed that they expected to inherit the house despite their estrangement from their father. Bill did not want any trouble in the future, so he suggested that if Tito really wanted to give him the house, Tito should deed the property to him now but keep living in the house until his death. Tito typed up a simple, untitled document that read “I hereby grant my house to my neighbor Bill in thanks for his excellent care of me and my property.” Tito signed the document and handed it to Bill. At Tito’s suggestion, Bill kept it in his fire-proof safe. Bill did not want to cause problems for Tito with his children by recording the document before it was necessary. Bill continued to be a good and helpful neighbor to Tito for the next five years, and Tito kept on living in the home. Tito unexpectedly passed away one winter day while Bill was on a two-month mission trip to Haiti. The old man did not have a will, and his only heirs were his three children. Wanting to unload the house quickly, Tito’s children deeded the property to Spencer for $200,000, which was $20,000 below fair market value for the home. Just before Spencer recorded the deed, Bill arrived home and told Spencer that he was the true owner of the house, and that Spencer’s deed was worthless. Both men raced to the courthouse. Bill had a faster car and recorded his purported deed 20 minutes before Spencer recorded his. Who is the owner of the house?
A key benefit оf а trаditiоnаl IRA cоmpared to a Roth IRA is