Question

Which of the following items are NOT included in the gross estate of a decedent?

1) Property held in an account registered tenants in common
2) Proceeds from a life insurance policy held in a revocable trust
3) The first 250,000 of a primary residence if owned singly,500,000 if owned jointly with spouse
4) Proceeds from a life insurance policy owned by the deceased's spouse

Answer 1

The items that are NOT included in the gross estate of a decedent are proceeds from a life insurance policy held in a revocable trust, the first $250,000 of a primary residence if owned singly or $500,000 if owned jointly with a spouse, and proceeds from a life insurance policy owned by the deceased's spouse.

Step-by-step explanation:

The items that are NOT included in the gross estate of a decedent are:

1. Proceeds from a life insurance policy held in a revocable trust. Since the policy is held in a revocable trust, it is considered separate from the decedent's estate.
2. The first $250,000 of a primary residence if owned singly, $500,000 if owned jointly with spouse. This amount is excluded from the gross estate for estate tax purposes.
3. Proceeds from a life insurance policy owned by the deceased's spouse. As the policy is owned by the spouse, it is not included in the decedent's gross estate.

On the other hand, property held in an account registered tenants in common is included in the gross estate of a decedent because it is a jointly owned asset.