American College HS330 Exam - Topic 1 Question 112 Discussion

Actual exam question for American College's HS330 exam

Question #: 112
Topic #: 1

Mr. Barlow died early this year. Under the terms of his will he left all his real estate and tangible personal property to his son. All the remainder of his probate estate was left to his wife, Mrs. Barlow. The following is a list of Mr. Barlow's probate assets and their fair market values at the time of his death:

Commercial real estate $150,000

Furniture and fixtures 75,000

Listed common stock 300,000

Other securities 200,000

In addition, Mr. Barlow also owned a $1 00,000 life insurance policy on his life with Mrs. Barlow designated as beneficiary. Based on this information, what is the amount of property in Mr. Barlow's estate qualifying for the federal estate tax marital deduction?

A$400,000

B$500,000

C$600,000

D$825,000

Show Suggested Answer

Suggested Answer: C

by Glynda at Jun 15, 2025, 12:27 PM

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Stephaine

5 months ago

Totally agree with Santos on this one!

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Santos

5 months ago

I think it’s actually $600,000, considering the life insurance.

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Alesia

5 months ago

Definitely $500,000 qualifies for the marital deduction!

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Yun

6 months ago

Wait, how does the life insurance count towards the estate?

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Natalie

6 months ago

Mr. Barlow's total probate assets are $625,000.

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Armanda

6 months ago

I believe the total probate assets are $625,000, but I’m not confident about whether to include the life insurance in the deduction calculation.

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Meghann

6 months ago

I’m a bit confused about the life insurance policy. Does it get included in the marital deduction if Mrs. Barlow is the beneficiary?

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Laurel

7 months ago

I remember practicing a similar question where we had to calculate the marital deduction. I think it was just the probate assets that count, so maybe $500,000?

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Kenny

7 months ago

I think the marital deduction includes everything left to the spouse, but I'm not sure if the life insurance counts since it's not part of the probate estate.

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Peggy

7 months ago

Okay, I think I've got it. The commercial real estate and furniture/fixtures go to the son, so those don't qualify for the marital deduction. The listed common stock and other securities total $500,000, which is the amount that qualifies for the marital deduction. The life insurance is a separate asset.

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Colton

7 months ago

I'm a little confused. Doesn't the life insurance policy also count towards the marital deduction? Or is that a separate thing? I want to make sure I understand this fully before answering.

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Maurine

7 months ago

I've got this! The marital deduction applies to the assets left to the spouse, Mrs. Barlow. That includes the listed common stock and other securities, which total $500,000.

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Princess

8 months ago

Hmm, this seems tricky. I'm not totally sure about the rules for the marital deduction, but I think it has to do with the assets that go to the spouse. I'll need to re-read the question carefully.

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Laura

8 months ago

Okay, let me think this through step-by-step. The question is asking about the federal estate tax marital deduction, so I need to identify the assets that qualify for that deduction.

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Jacquline

10 months ago

You know, if Mr. Barlow had just invested in a few more llamas, this whole thing might have been a lot simpler. I'm sticking with C) $600,000 - can't go wrong with the classic marital deduction, am I right?

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Delpha

9 months ago

Yeah, the marital deduction is a safe bet. Let's go with C) $600,000.

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Ardella

9 months ago

I agree, C) $600,000 seems like the right choice here.

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Shaun

9 months ago

Yeah, the marital deduction is a safe bet. Let's go with C) $600,000.

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Whitney

10 months ago

I agree, C) $600,000 seems like the right choice here.

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Daisy

11 months ago

This reminds me of the time I had to file my own taxes. Talk about a headache! Anyway, I think the answer is B) $500,000. Gotta keep it simple, you know?

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Lai

11 months ago

Ah, the old 'what's in the estate' question. Classic! I'm going with C) $600,000. The listed common stock and other securities add up to $500,000, and the life insurance policy of $100,000 should also qualify for the marital deduction.

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Gertude

10 months ago

Looks like we're all on the same page with C) $600,000.

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Santos

10 months ago

I agree, the common stock, other securities, and life insurance policy all qualify for the marital deduction.

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Rikki

10 months ago

I think you're right, C) $600,000 seems like the correct answer.

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Arletta

11 months ago

Hmm, I'm not so sure. The life insurance policy also seems to be part of the estate, and that was left to the wife. Shouldn't that be included in the marital deduction calculation? I'm leaning towards D) $825,000.

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Nathalie

11 months ago

I think the answer is B) $500,000. The commercial real estate and personal property were left to the son, so they don't qualify for the marital deduction. The listed common stock and other securities add up to $500,000, which is the amount that would go to the wife.

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Marti

10 months ago

Actually, the correct answer is B) $500,000. The life insurance policy is not included in the estate for the marital deduction, only the listed common stock and other securities.

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Lemuel

11 months ago

I think it's C) $600,000. The life insurance policy with Mrs. Barlow as beneficiary should also be included in the estate qualifying for the marital deduction.

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