Which item is a LOG PITS asset?

Which item is a LOG PITS asset?

• A. US government bonds
• B. Life insurance
• C. Gifts under 13k
• D. Totten trust

Answer: (B)

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.