Question

An unmarried client dies intestate with $400,000 in her own name and $100,000 in joint tenancy with right of survivorship with one of her four children. The assets will be divided as follows:

a. $125,000 to each child.
b. $200,000 to one child, $100,000 to each of the others.
c. $100,000 to one child, $133,333 to each of the others.
d. $500,000 to one child.

Answer 1

The correct answer is option b. $200,000 to one child, $100,000 to each of the others.

Step-by-step explanation:

When a person dies intestate, the distribution of their assets is determined by state intestacy laws. In the case presented, a client passed away without a will, leaving a total estate of $500,000: $400,000 solely in their name and $100,000 held in joint tenancy with right of survivorship with one child.

Since the asset held in joint tenancy automatically goes to the surviving joint tenant, the $100,000 in joint tenancy would go directly to the one child. The remaining $400,000 would then be divided equally among all four children, giving each of them $100,000 from this portion.

Therefore, the correct distribution of assets would be: $200,000 to one child (who was the joint tenant), and $100,000 to each of the others. This means option 'b' is the correct answer.