1.

If Pam was to die first, the car would automatically pass to the daughter.

Group of answer choices

True

False

2.

What is a benefit for titling the car tenancy in common with her daughter?

Group of answer choices

makes clear that the daughter should receive the car upon Pamela's death

the car automatically passes to the daughter with no probate proceedings

the car is not included in the estate of Pamela

avoids court costs

3.

Which asset(s) would not pass through probate?

I. IRA

II. Personal Residence

III. Toyota Prius

IV. Swift Medicine

Group of answer choices

I. and II.

I., II., and III.

All the above

I.

4. What happens to the term life policy if the daughter dies first?

$1,000,000 gets split between remaining children

$1,000,000 goes to husband

Nothing

$1,000,000 goes to Pamela

Dr. Pamela Swift (age 50) and married for the past 20 years lives in California (a community property state). She works, and her husband takes care of their four children. Pamela feels the children and her husband are spoiled rotten. She does not trust any of them with her money now or at death. Her will dated January 31, 2010, leaves all assets to her husband (John). Pamela has the following estate: Asset Fair Market Value (FMV) at death Inheritance (10 years ago) at mother's death ($200,000) now worth $500,000 Owner of Swift Medicine (sole proprietorship) $250,000 Individual Retirement Account (IRA; husband beneficiary) $500,000 Stock and bond account with brokerage firm using earnings as a doctor, original cost, or basis, $500,000 of account is $125,000 Term Life policy on Pamela's life (death benefit of $0 $1,000,000; husband as beneficiary) Personal Residence (JTWROS), bought house for $500,000 $300,000 Toyota Prius (Tenancy-in-Common) with $50,000 daughter, 100% paid for by Pamela