Question

For each of the following situation, select the response that best describes the treatment of the property as far as inclusion in Decedent's probate estate and/or gross estate. - . 1)At his death, Decedent owned with his Daughter a vacation home that was titled joint with right of survivorship. Eight years before his death, Decedent had added Daughters name to title. Daughter did not give any consideration in exchange for her half of the vacation home. - . . 2)At his death, Decedent owned with his Daughter a vacation home that was titled joint with right of survivorship. Eight years before his death, Decedent had added Daughters name to title in exchange for the payment by Daughter of an amount equal to 50% of the value of the vacation home at that time. - . . 3)At his death, Decedent owned with his Daughter a vacation home that was titled joint with right of survivorship. Daughter had originally purchased the vacation home. Eight years before his death, Daughter had added Decedent's name to title. Decedent did not give any consideration to Daughter in exchange for his half of the vacation home. - . 4)At the time of his death, Decedent owned a life insurance policy that insured his life. His Daughter was named as the beneficiary of the policy. - . . . 5)A life insurance policy insuring Decedent's life was in force at the time of his death. The policy was owned by his Daughter at the time of Decedent's death. Decedent had originally owned the policy, but transferred it to daughter 30 months ago as a gift (i.e., no consideration received). - . . 6)A life insurance policy insuring Decedent's life was in force at the time of his death. The policy was owned by his Daughter at the time of Decedent's death. Decedent had originally owned the policy, but transferred it to daughter 54 months ago as a gift (i.e., no consideration received). - . . 7)A life insurance policy insuring Decedent's life was in force at the time of his death. The policy was owned by his irrevocable life insurance trust (ILIT). Decedent never owned the policy. Rather, the trustee of the ILIT purchased the policy with funds provided to the trust by Decedent. The policy was purchased by the trustee 30 months before Decedent died. - 8)When he died, Decedent owned several certificates of deposit (CDs). The title of each CD included a "payable-on-death" beneficiary. . 9)At the time of his death, all of Decedent's property was held in a revocable living trust. Until his death, Decedent was the trustee of his living trust. Upon his death, a successor trustee was named and the trust automatically became an irrevocable trust. - 10)At his death, Decedent owned a Roth IRA that named his Daughter as beneficiary in the event of death. A. The property is not included in Decedent's probate estate, but 50% of the date-of-death value is included in Decedent's gross estate. B. Decedent does not have a probate or gross estate, because his property is left to an immediate family member. C. The property is included in both Decedent's probate estate and in his gross estate. D. The property is not included in Decedent's probate estate, but the full date-of-death value is included in Decedent's gross estate. E. The property is included in Decedent's probate estate, but not in his gross estate. F. The property is not included in either Decedent's probate estate or his gross

Answer 1

1 D- Since the daughter did not contributed anythong towards the property, the entire value will be included in the decendent's gross estate but wil not be a part of the probate estate.

2 A since the daughter initially contributed 50% towards the property, only half of the property's value will be added to the gross estate but nothing towards the probate estate.

3 C since the full value was contributed by the daughter, nothing will be added towards the value of either probate or gross estate.

4 D since daughter is the beneficiary of the life insurance and he could have changed the beneficiary anytime before hos death, the entire value will be a part of his gross estate but not a part of probate estate.