Week 10

When a decedent dies, what is included in their probate estate?

• The probate estate includes all assets solely owned by the decedent at death.
• Assets held in a trust established by the decedent.
• All debts and liabilities of the decedent.
• Only assets held in joint tenancy with rights of survivorship.

Which of the following assets typically bypasses the probate process?

• Assets with no designated beneficiary.

• Assets held in a safe deposit box.

• Assets solely owned by the decedent.

• Assets held in a revocable living trust.

What is the primary purpose of probate?

• To transfer assets to the state.

• To ensure all debts are forgiven.

• To avoid paying any estate taxes.

• To distribute the decedent's assets according to their will.

Which of the following is a common method to avoid probate?

• Naming the state as the beneficiary.

• Creating a joint tenancy with rights of survivorship.

• Holding all assets in cash.

• Avoiding the creation of a will.

The process of a personal representative gathering assets, protecting assets, paying debts, and doing distributions to beneficiaries is best known as?

• Asset liquidation
• Trust management
• Debt settlement
• Estate administration

John and Sally owned property as tenants by the entirety. John dies, survived by his wife. In his will, John stated that his daughter, Sarah, was to receive the home, even though John has 3 other children. Who owns the property?

• Sally owns the property.
• Sarah owns the property.
• The property is sold and divided among heirs.
• The property goes to John's estate and is equally divided between all 4 kids.

Joe dies having $40,000 in cash assets held in his name alone. He does not own any real property and all personal property he owns is worth about $2,000. How should Joe's estate be administered?

• Joe's estate should be administered through the informal probate process.

• Joe's estate should be administered through the formal probate process.

• Joe's estate should not be administered, but just divided between heirs outside of the probate process.

• Joe's estate should be administered through a small estate probate process.

Frank died without a will, survived by his wife, Marge. Frank and Marge owned everything together as joint tenants. Does Franks estate need to be administered?

• No, Frank's estate does not need to be administered.
• Frank's estate must go through probate.
• Yes, Frank's estate needs to be fully administered because he owned property.

• Yes, Frank's estate needs to be administered, but only his personal property.

If, after opening an informal probate estate, the personal representative discovers that the estate is only valued at $15,000, may the personal representative shorten the administration process?

• Yes, through summary administration.

• Yes, but must file a motion to transition from an informal probate to a summary administration.

• Yes, but only if they swear or affirm that they did not know prior to filing informally that the estate's value qualified.

• No, once the form of estate administration is decided, it must proceed with that form of administration.

Which type of probate is conducted under the supervision of a judge with notice to interested persons?

• Informal probate
• Summary probate
• Small estate probate
• Formal probate