Which term refers to an estate that passes to beneficiaries by will?

Which term refers to an estate that passes to beneficiaries by will?

• A. Probate estate
• B. Gross value
• C. Arm's-length transaction
• D. Incidents of ownership

Answer: (A)

Probate estate refers to the portion of a decedent's assets that must go through probate and pass to beneficiaries under the will. These are assets titled in the decedent’s name at death and not held with non-probate designations (like joint tenancies with right of survivorship or beneficiary-designated accounts). This estate is the part that the probate court administers—paying debts and distributing assets according to the will. The other terms don’t describe what passes by will: gross value is the total value before deductions, an arm's-length transaction is a sale between independent parties, and incidents of ownership refers to rights within a policy or asset that can affect control or inclusion but not the concept of assets passing by will.

Probate estate refers to the portion of a decedent's assets that must go through probate and pass to beneficiaries under the will. These are assets titled in the decedent’s name at death and not held with non-probate designations (like joint tenancies with right of survivorship or beneficiary-designated accounts). This estate is the part that the probate court administers—paying debts and distributing assets according to the will. The other terms don’t describe what passes by will: gross value is the total value before deductions, an arm's-length transaction is a sale between independent parties, and incidents of ownership refers to rights within a policy or asset that can affect control or inclusion but not the concept of assets passing by will.