Which item is a LOG PITS asset?

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Multiple Choice

Which item is a LOG PITS asset?

Explanation:
LOG PITS refers to assets that bypass the probate process and pass outside the will. Life insurance fits this category because the policy proceeds go directly to a named beneficiary on death, without going through the decedent’s probate estate. That direct transfer is the hallmark of a LOG PITS asset. US government bonds owned by the decedent typically become part of the probate estate unless they’re held with a beneficiary designation or in a form that avoids probate; gifts given during life are transfers that occur before death and aren’t assets at death; a Totten trust is also a non-probate arrangement, but life insurance is the clearest, most classic example of a LOG PITS asset.

LOG PITS refers to assets that bypass the probate process and pass outside the will. Life insurance fits this category because the policy proceeds go directly to a named beneficiary on death, without going through the decedent’s probate estate. That direct transfer is the hallmark of a LOG PITS asset.

US government bonds owned by the decedent typically become part of the probate estate unless they’re held with a beneficiary designation or in a form that avoids probate; gifts given during life are transfers that occur before death and aren’t assets at death; a Totten trust is also a non-probate arrangement, but life insurance is the clearest, most classic example of a LOG PITS asset.

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