Under the T-Subs framework, which asset is not included in LOG PITS?

Under the T-Subs framework, which asset is not included in LOG PITS?

• A. Life insurance
• B. Gifts under 13k made within 1 year of death
• C. Premarriage irrevocable transfers
• D. Employee pension/deferred compensation plans

Answer: (D)

Under this framework, LOG PITS encompasses assets that typically affect transfer calculations, either by being reachable as gifts or by passing into or out of the estate. Life insurance is counted because a policy can have cash value or an eventual death benefit that can be realized as part of the estate’s value. Gifts under the annual exclusion amount made within one year of death are included because they reduce the assets the decedent could transfer and thus enter the lookback calculation. Premarriage irrevocable transfers are included because they are completed gifts that shift wealth outside the estate. Employee pension and deferred compensation plans are not included because these assets generally pass outside the decedent’s estate through beneficiary designations or are governed by the plan terms and ERISA, rather than being treated as gifts or estate assets within LOG PITS. They are not counted in this LOG PITS framework in the same way as the other items.

Under this framework, LOG PITS encompasses assets that typically affect transfer calculations, either by being reachable as gifts or by passing into or out of the estate. Life insurance is counted because a policy can have cash value or an eventual death benefit that can be realized as part of the estate’s value. Gifts under the annual exclusion amount made within one year of death are included because they reduce the assets the decedent could transfer and thus enter the lookback calculation. Premarriage irrevocable transfers are included because they are completed gifts that shift wealth outside the estate.

Employee pension and deferred compensation plans are not included because these assets generally pass outside the decedent’s estate through beneficiary designations or are governed by the plan terms and ERISA, rather than being treated as gifts or estate assets within LOG PITS. They are not counted in this LOG PITS framework in the same way as the other items.