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This question is discussed in the Practice Question Palooza question episode of the BIF Bites podcast.
Jess has died with ownership interest in the assets listed below. Which asset will pass through probate?
| Residence |
JTWROS
|
$300,000
|
| Traditional IRA |
Beneficiary is spouse
|
$50,000
|
| Vacation cottage |
Community property
|
$100,000
|
| Savings account |
Fee simple with POD to son
|
$30,000
|
- Bank savings account held as fee simple with POD to son.
- Traditional IRA with spouse as beneficiary.
- Vacation cottage held as community property.
- Personal residence held a JTWROS.
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Correct answer: C. Vacation cottage held as community property
Instructor insight:
The decedent spouse’s half of the community property must pass through probate. Assets which pass through contract, such as life insurance, retirement accounts, and annuities avoid probate. Assets which pass by law, such as JTWROS and tenancy by entirety avoid probate. Assets which pass by trust terms also avoid probate. All other assets, whether passing testate or intestate must pass through probate.
