Under LOG PITS vs T-Subs, which asset is NOT listed as a LOG PITS item?

• A. Life insurance
• B. One-half of a qualified pension and profit sharing benefits
• C. Employee pension/deferred compensation plans
• D. Gifts under 13k made within 1 year of death

Answer: (C)

LOG PITS is a way to remember assets that count toward the decedent’s gross estate for estate tax purposes. Life insurance proceeds are included because the policy’s value is tied to the decedent’s ownership and estate. One-half of qualified pension and profit-sharing benefits is included because those retirement benefits tied to the decedent are treated as part of the estate’s wealth at death. Gifts made within a year of death are included under the look-back rule, which brings certain transfers back into the estate for tax purposes.

The asset that is not listed is employer pension/deferred compensation plans. These plans typically pass outside the decedent’s estate to beneficiaries according to the plan terms, so they aren’t counted as LOG PITS items.