Janet is diagnosed with terminal cancer. She has three grown children. Janet heard that her children would likely spend thousands of dollars to probate her estate after her death. Since her only real asset is her family home, she is concerned that they will spend too much on probate to get the house in their names. Janet also heard that she can help her children avoid probate by deeding the home to them while she is still alive. Janet hires a lawyer to prepare a deed transferring her home to her children while she is still alive.
Mary’s estate consists of two significant assets, a life insurance policy and a traditional IRA. Both assets are equal in value. To simplify and equally distribute her assets, Mary names her son as the beneficiary of her life insurance and her daughter as the beneficiary of her IRA.