At the Time of His Death, Jason Was a Participant

question 79

Multiple Choice

At the time of his death, Jason was a participant in Silver Corporation's qualified pension plan and group term life insurance. The balance of the survivorship feature in his pension plan is that: $\begin{array}{ll}\text { Contributions by Silver } & \$ 800,000 \\\text { After-tax contributions by Jason } & 400,000 \\\text { Plan earnings } & 300,000\end{array}$ The term insurance has a maturity value of $100,000. All amounts are paid to Pam, Jason's daughter. One result of these transactions is:

• A) Pam must pay income tax on $300,000.
• B) Pam must pay income tax on $1,100,000.
• C) Jason's gross estate must include $1,200,000.
• D) Jason's gross estate must include $1,500,000.

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Definitions:

Perfection by Possession

A method of securing interests in personal property by physical possession, thereby prioritizing claims against the property.

Perfection by Filing

A legal process to protect a secured interest in a debtor's property by filing appropriate documents with a governmental office or registry.

Perfection

In legal and financial contexts, it often relates to the process of securing a security interest in collateral, ensuring priority over other claims.

Financing Statement

A document filed by a creditor to indicate a security interest in the property of a debtor, used in securing loan agreements.