Question

Aryk, a quebec resident, dies suddenly in a car accident leaving business debts of $250,000, a student loan of $12,000 and a segregated fund contract that he purchased 3 years previously in the amount of $300,000 that names his mother as beneficiary. how much of the segregated fund contract can the creditors claim?

a. $12
b. $0.
c. $250
d. $262

Answer 1

The creditors cannot claim any amount from Aryk's segregated fund contract, as it is protected due to having a named beneficiary, which is Aryk's mother.

Step-by-step explanation:

The question pertains to the claim a creditor can make on a segregated fund contract in the event of an individual's death. In most cases, the proceeds from a segregated fund contract are protected from creditors if a beneficiary is named. Since Aryk named his mother as the beneficiary 3 years prior to his death, the creditors typically cannot claim these funds. Therefore, the creditors can claim $0 from the segregated fund contract.