Ch 4: The Probate Process

Carol's executor has located all of her property. Given the following property listing, what is the total value of Carol's probate estate? A)$24,000. B)$484,000. C)$834,000. D)$1,024,000.

A)$24,000.

Eric owns the following property: A)Home and stock in ABC Corp. B)Home, beach house, and checking account. C)Stock in ABC Corp and checking account. D)Home only.

A)Home and stock in ABC Corp.

Parker lives in Florida and dies at age 71. He has the following assets: Which of Parker's assets have to be retitled through Florida probate? A)The Porsche. B)The home and the Porsche. C)The home, the Porsche, and the checking account. D)The home, the Porsche, and the Alabama property.

A)The Porsche.

Sully died owning the following property. Which would not be included in Sully's probate estate?1. A certificate of deposit, in Sully's name, at the local bank.2. An interest in commercial investment real estate held tenancy in common with a son of the decedent.3. Retirement plan proceeds made payable to Sully's daughter.4. A mountain vacation home Sully owns jointly (JTWROS) with his wife. A)1 only. B)3 and 4. C)1, 2, and 3. D)1, 2, and 4.

B)3 and 4.

All of the following statements are correct EXCEPT: A)A person named in a will to receive property is referred to as a legatee. B)A person who dies with a valid will is said to die intestate. C)The term devisee is used to refer to a person who inherits real property under the will. D)A person who receives property under the state intestacy laws is called an heir.

B)A person who dies with a valid will is said to die intestate.

Ramona inherited the property listed below from her father upon his death. Which of the following property interests passed to her through probate? A)A 2005 Porsche titled and held within a revocable living trust. B)Ramona's father's community property share of a vacation property. C)A $300,000 distribution to Ramona, as listed beneficiary, from her father's 401(k) plan. D)Title to a Manhattan condo previously owned within a trust with Ramona listed as the beneficiary at her father's death.

B)Ramona's father's community property share of a vacation property

Which of the following is generally included in a decedent's probate estate? A)Revocable trust with a named living beneficiary. B)Sole ownership specifically bequeathed in a decedent's will. C)Life insurance with a named living beneficiary. D)Transfer-on-death investment account with a named living beneficiary.

B)Sole ownership specifically bequeathed in a decedent's will.

Which of the following statements is correct about the probate process? A)A surety bond always has to be posted by an administrator and an executor. B)The executor must provide basis information to the IRS. C)A grant of letters testamentary is provided to the estate administrator. D)If an asset that is bequeathed to a legatee has been disposed of prior to the decedent's death, the extinction of the legacy is called redemption.

B)The executor must provide basis information to the IRS.

Many financial advisors believe that the best estate plan excludes as many assets as possible from the probate estate. Which of the following statements justifies this belief? A)The probate assets are not subject to creditors. B)The probate estate is filed with the court and can become public knowledge. C)The more excluded assets from the probate estate, the more expensive the administration is likely to be. D)The more assets that go through the probate process, the faster the heirs are likely to receive the assets.

B)The probate estate is filed with the court and can become public knowledge.

Which of the following is a disadvantage of the probate process? A)The decedent's heirs and/or legatees are given clear title to property. B)The probate process requires several court filings. C)The probate process provides for an orderly distribution of the decedent's assets. D)The decedent's creditors are protected.

B)The probate process requires several court filings.

If Paula died with each of the following property interests, which will be excluded from her probate estate? A)Property owned as community property. B)Property held tenancy in common. C)Death proceeds of life insurance payable to a living stranger. D)Property owned solely.

C)Death proceeds of life insurance payable to a living stranger.

Which of the following is considered an advantage of the probate process? A)The probate process creates delays. B)The probate process is costly. C)Heirs receive property with clear title. D)Information that is filed with the court becomes public information.

C)Heirs receive property with clear title.

Krista would like to reduce the risk of public scrutiny of her assets at her death. Which of the following would not help Krista accomplish this goal? A)Place all property in trust. B)Retitle property so that it is titled with a survivorship feature. C)Include a specific bequest of each and every item Krista owns in her will. D)Use items such as annuities, PODs and TODs.

C)Include a specific bequest of each and every item Krista owns in her will.

Brody lives in Texas, which is a community property state. He dies at age 55. He has the following assets: Which of Brody's assets have to go through Texas probate? A)The Audi. B)The home and the Audi. C)The home, the Audi, and the furnishings. D)The home, the Audi, and the boat.

C)The home, the Audi, and the furnishings.

Which of the following statements is correct? A)A person who dies with a valid will is said to die intestate. B)A person who dies without a valid will is said to die testate. C)A person named in a will to receive property is referred to as a devisee. D)A person who receives property under the state intestacy laws is called an heir.

D)A person who receives property under the state intestacy laws is called an heir.

Which of the following items will pass through probate? A)Retirement plan with someone other than the decedent listed as the beneficiary. B)Investment real estate held JTWROS. C)Personal residence held tenancy by the entirety. D)Life insurance policy with no designated beneficiary.

D)Life insurance policy with no designated beneficiary.

Which of the following property interests of a decedent will avoid probate? A)Proceeds of life insurance payable to the decedent's estate. B)Community property. C)Property owned tenants in common with decedent's father. D)Proceeds of life insurance payable to the decedent's living son.

D)Proceeds of life insurance payable to the decedent's living son.

Marvin's attorney has advised him to set up trusts to avoid probate. Which of the following statements regarding the probate process is not correct? A)The distribution of probate assets can be delayed. B)Through the probate process heirs and/or legatees are given clear title to the property. C)Creditors are protected through the probate process. D)The probate process is confidential.

D)The probate process is confidential.