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, of account is $125,000	$500,000
Term Life policy on Pamela's life (death benefit of $1,000,000; husband as beneficiary)	$0
Personal Residence (JTWROS), bought house for $300,000	$500,000
Toyota Prius (Tenancy-in-Common) with daughter, 100% paid for by Pamela	$50,000

1.

Which asset(s) would not pass through probate?

I. IRA

II. Personal Residence

III. Toyota Prius

IV. Swift Medicine

Group of answer choices

I.

I., II., and III.

I. and II.

All the above

2.

What happens to the term life policy if one of her daughters dies first?

Group of answer choices

$1,000,000 goes to Pamela

$1,000,000 gets split between remaining children

$1,000,000 goes to husband

Nothing

3.

Assuming Pamela is the first to die, would anything change if she owned the personal residence Tenancy by Entirety (TIE) instead of JTWROS?

Group of answer choices

Yes. The home would now not be included in Pamela's estate

Yes. 25% of the home would now be included in Pamela's estate

No.

Yes. 100% of the home would now be included in Pamela's estate

4.

Assuming Pamela asks you to set up a life estate for her and she is first to die, what could be a possible objection to this.

Group of answer choices

John would not be able to sell the home without permission from their kids

Higher court costs

John would be kicked out of his personal residence

Estate taxes would likely be triggered