Below is the Probate case of Phillepe and Jenna. Review the fact pattern and answer the questions that follow.

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Phillepe is a co-founder of a successful bio-med start-up company and Jenna is an executive at a large pharma company. They met while on a European river cruise five years ago, fell in love and got married right away. Phillepe is 47, has been a widower for 10 years, and Jenna is 38. Jenna is currently pregnant with their first child. Marjorie, Phillepes 18 year old daughter from his first marriage, is heading off to college this year.

Both Phillepe and Jenna come from wealthy families and expect significant inheritance sometime in the distant future when Phillepes mother passes away and when Jennas dad passes away. Phillepes dad set up an irrevocable trust before he died providing Phillepe income for life and eventually passing to Phillepes children. The balance of the trust is $1,500,000 and he receives $60,000/year in trust income. Likewise, Jenna has a trust for her benefit set up by her grandmother that has a balance of $800,000 which she is entitled to when she turns 40 years old.

On their own, the couple has accumulated a significant amount of assets, which is noted below.

Asset	Jenna	Phillepe	Joint Tenants w/Right of Survivorship
Family Farmland (1/3, TIC, undivided interest)(value is her interest only)	$4,000,000
Home			$800,000
Michigan Vacation Home			$1,400,000
Collections	$125,000	$50,000
Investment Portfolio A	$525,000
Investment Portfolio B		$1,450,000
Investment Portfolio C			$500,000
Rollover IRAs (Jennas bene is unnamed, Phillepes is Marjorie)	$300,000	$900,000
Personal Property	$80,000		$250,000
Automobiles			$100,000
Anticipated Inheritance	$3,000,000	$12,000,000

They are very private people and dont want anyone in their business. Consequently, they want to completely avoid probate and need your help to understand their situation.

1. What is Jennas Gross Estate TODAY?

A. $7,355,000

B. $6,555,000

C. $5,875,000

2. What is Jennas Probate Estate TODAY?

A. $6,555,000

B. $5,830,000

C. $5,030,000

D. $0

3. What is Phillepes Gross Estate TODAY?

A. $15,925,000

B. $3,925,000

C. $2,400,000

4. What is Phillepes Probate Estate TODAY?

A. $2,920,000

B. $3,925,000

C. $2,400,000

D. $0

5. Will either of them be subject to Illinois estate tax TODAY?

A. Yes

B. No

6. Who?

A. Jenna

B. Phillepe

C. Neither

D. Both

7. Who will have a Federally taxable estate TODAY?

A. Jenna

B. Phillepe

C. Neither

8. Why?

9. How can they avoid probate?

I. Give all of their assets to each other

II. Give all their assets to charity

III. Set up a trust and move property into it

IV. Retitle property to joint tenancy with right of survivorship

V. Ensure that their retirement accounts have named beneficiaries

A. I and III

B. I, II and III

C. III and IV

D. III, IV, V

E. All of the above

10. At what point in the future will they need to revisit their estate plan to ensure they are still avoiding probate?