In the Recommended Plan Scenario, which asset category is excluded from Total Portfolio Assets on death?

In the Recommended Plan Scenario, which asset category is excluded from Total Portfolio Assets on death?

• A. Cash Assets
• B. Real Estate
• C. Annuities
• D. Investments

Answer: (A)

In the Recommended Plan Scenario, the focus is on the assets that are expected to transfer to heirs as part of the estate. Cash assets are excluded because they represent liquidity that isn’t typically part of the inherited portfolio tracked for estate transfer. Cash is often held outside the investable portfolio (or passes directly to beneficiaries through POD accounts or other arrangements) and may be used to cover immediate expenses, taxes, or living needs before or after death. Excluding cash keeps the projection focused on non-cash assets like real estate, investments, and annuities—the assets more likely to form the basis of what the heirs receive through the estate.

In the Recommended Plan Scenario, the focus is on the assets that are expected to transfer to heirs as part of the estate. Cash assets are excluded because they represent liquidity that isn’t typically part of the inherited portfolio tracked for estate transfer. Cash is often held outside the investable portfolio (or passes directly to beneficiaries through POD accounts or other arrangements) and may be used to cover immediate expenses, taxes, or living needs before or after death. Excluding cash keeps the projection focused on non-cash assets like real estate, investments, and annuities—the assets more likely to form the basis of what the heirs receive through the estate.