A client owns a $200,000 home in joint tenancy with his wife, a $15,000 car in his own name, an $8,000 CD in his name alone, and a $100,000 life insurance policy (wife is beneficiary). What is the value of his probate estate?

A client owns a $200,000 home in joint tenancy with his wife, a $15,000 car in his own name, an $8,000 CD in his name alone, and a $100,000 life insurance policy (wife is beneficiary). What is the value of his probate estate?

• A. $23,000
• B. $33,000
• C. $223,000
• D. $333,000

Answer: (A)

Probate estate consists of assets owned solely by the decedent that would be distributed through probate. Assets that pass outside probate aren’t included. The home is in joint tenancy with survivorship, so upon death the other owner (his wife) automatically gets it; it does not go through probate. The life insurance policy lists his wife as beneficiary, so the death benefit goes directly to her and also isn’t part of probate. The car and the certificate of deposit are both owned by him alone, so they would be handled in probate. Add the values of those sole-owned items: 15,000 plus 8,000 equals 23,000. So the probate estate is twenty-three thousand dollars.

Probate estate consists of assets owned solely by the decedent that would be distributed through probate. Assets that pass outside probate aren’t included.

The home is in joint tenancy with survivorship, so upon death the other owner (his wife) automatically gets it; it does not go through probate. The life insurance policy lists his wife as beneficiary, so the death benefit goes directly to her and also isn’t part of probate. The car and the certificate of deposit are both owned by him alone, so they would be handled in probate.

Add the values of those sole-owned items: 15,000 plus 8,000 equals 23,000. So the probate estate is twenty-three thousand dollars.