Estate PLanning Chapter 4 MC

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 court and can become public knowledge C. the more excluded assets from the probate estate, the more expensive the admin 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

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. Community property passes through probate Property held within a revocable living trust transfers per the trust document. A distribution to a listen beneficiary of a QR plan passes per contract law. Real estate included in a trust transfers per the trust document.

Which of the following is generally included in a decedent's probate estate? A. Revocable trust with a named living beneficiary B. Fee simple ownership specifically bequeathed in a decedent's will C. Life insurance with a named living beneficiary d. TOD account with a named living beneficiary.

B. Generally, the other options listed will avoid probate as long as the listed beneficiary is alive to receive the proceeds of the policy/account or trust. If the beneficiaries have predeceased the decedent, or if beneficiaries have not been names, the proceeds will revert to the decedent's estate and pass through probate.

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 ITS c. The grant of letter testamentary is provided to the estate aministrator 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 bond is not always required for the executor, if provided for by the will. C applies to an executor, not an admin D should be ademption, not redemption

Tom died owning the following property. Which would NOT be included in his probate estate? a. A certificate of deposit, in Tom;s name, at the local bank b. an interest in commerical investment real estate held tenancy in common with a son of the decedent. c. Retirement plan proceeds made payable to Tom's daughter d. Mountain vacation home Tom owns JTWROS with his wife

C and D. Retirement plan proceeds payable to a listed living beneficiary transfer by contract law Property owned JTWROS transfers by operation of state law to the surviving joint tenants.

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 fee simple

C. Life insurance and other death proceeds are included in the decedent's gross estate but are not included in the decedent's probate estate.

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

Which of the following items will pass through the probate? a. retirement plan with someone other than the decedent listed as the benficiary b. investment real estate held in JTWROS c. personal residence held tenancy by the entirety d. life insurance policy with no designated beneficiary

D Proceeds of a life insurance policy with a listed beneficiary pass to the listed beneficiary by contract law and avoid the probate process.

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 names in a will to receive property is referred to as a devisee D. A person who received property under the state intestacy laws is called an heir.

D. Choice C defines describes a legatee