Which term refers to the portion of an estate that passes to beneficiaries under a will?

Which term refers to the portion of an estate that passes to beneficiaries under a will?

• A. Gross value
• B. Arm's-length transaction
• C. Probate estate
• D. Dower

Answer: (C)

The main idea here is how property is transferred after death: some assets pass through probate under a will, while others pass outside probate. The term for the portion of an estate that passes to beneficiaries under a will is the probate estate. This includes assets that are owned in the decedent’s name at death or that must be administered through the probate process to distribute according to the will, after debts and administrative costs are paid. Assets that avoid probate—like life insurance policies with named beneficiaries or accounts with payable-on-death designations—do not form part of the probate estate. The other terms don’t fit: gross value refers to total value before adjustments, arm's-length transaction is a sale between unrelated parties, and dower is a surviving spouse’s legal right to a portion of the estate, not the general estate portion that passes under a will.

The main idea here is how property is transferred after death: some assets pass through probate under a will, while others pass outside probate. The term for the portion of an estate that passes to beneficiaries under a will is the probate estate. This includes assets that are owned in the decedent’s name at death or that must be administered through the probate process to distribute according to the will, after debts and administrative costs are paid. Assets that avoid probate—like life insurance policies with named beneficiaries or accounts with payable-on-death designations—do not form part of the probate estate. The other terms don’t fit: gross value refers to total value before adjustments, arm's-length transaction is a sale between unrelated parties, and dower is a surviving spouse’s legal right to a portion of the estate, not the general estate portion that passes under a will.