Probate is generally calculated on assets that form part of the deceased's estate. A tenancy in common interest is owned by the deceased as a separate property interest and does not pass automatically to the other owner by survivorship. It is therefore included in the estate unless another legal arrangement applies. Insurance contracts with a preferred or named beneficiary usually pay directly to the beneficiary. Assets held in a formal irrevocable trust are owned by the trust, not personally by the deceased. Registered plans with a valid adult child beneficiary designation generally bypass the estate, although tax consequences may still arise on the deceased's terminal return. Gurjeet should distinguish probate inclusion from income tax inclusion; an asset may bypass probate and still create tax. For the probate-cost question, the tenancy in common holding is the correct inclusion. Study Guide focus: probate property, beneficiary designations, trusts, joint ownership, and estate administration.

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