Estate_11th_Ch_4_MC_Solutions.pdf - ESTATE PLANNING 11TH ED...

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ESTATE PLANNING, 11TH ED. C HAPTER 4 E ND OF C HAPTER M ULTIPLE C HOICE S OLUTIONS 1. The correct answer is c. All except c are included in a decedent’s probate estate. Life insurance and other death proceeds are included in the decedent’s gross estate, but are not included in the decedent’s probate estate. 2. The correct answer is d. Proceeds of a life insurance policy payable to the decedent’s living son will avoid probate. Answers a, b, and c will be included in the probate estate. 3. The correct answer is a. Only the automobile, valued at $24,000, would be included in Carol’s probate estate. Because Carol has a named beneficiary, the life insurance and the 401(k) will transfer per contract law to the listed beneficiaries. The property owned tenancy by the entirety will transfer automatically, per the state law, to Carol’s husband Jim. 4. The correct answer is a. Eric’s home and his tenancy in common interest in the ABC Corp stock owned with his brother will be

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