3. Jim and Helen have an estate plan that leaves all assets outright to the surviving

spouse. Following Jim's death, if Helen disclaims her interest in assets, they will

pass to a bypass trust. Helen is a beneficiary of the bypass trust. Following both Jim and

helens death, assets will pass to their two sons, Christopher and Brian. In which of the

following situations, is bypass planning appropriate?

A. The value of Tim and Helen's estate

is well below the federal exemption

amount and no estate tax is expected to be due.

B. Helen is a surgeon and is currently

being sued for medical malpractice by

one of her patients.

C. Assets are expected to appreciate significantly between the time of the

first spouse's death and the second spouse's death. They are not concerned

with federal estate tax but are concerned with income tax.

D. Helen is comfortable managing the family finances.