CRPC Practice Exam 2025 – Complete Test Prep Guide

The inclusion of trust assets in a decedent's gross estate is based on the concept of ownership and control at the time of death. If the decedent held assets within a trust at their time of death, those assets are considered part of the gross estate for estate tax purposes, even if the trust's terms dictate that the assets are to be distributed to beneficiaries afterward. This is because the decedent had control over those assets until their death.

In contrast, a life insurance policy transferred to the decedent's son five years prior would generally not be included in the gross estate, as it was an outright transfer and lasted beyond the three-year look-back period typically employed for estate tax calculations on gifts. Similarly, securities with a Transfer on Death (T.O.D.) designation would pass directly to the named beneficiary upon the decedent’s death, thus not being part of the gross estate, as they are designated to transfer outside of probate. Finally, assets transferred to a spouse one year before death may also be excluded from the gross estate due to the marital deduction, as long as they are legally considered separate from the decedent's financial control at the time of death.