Which statement about Estate Planning Reports is true?

Which statement about Estate Planning Reports is true?

• A. Net Worth tab shows only the client's assets
• B. Net Worth tab shows what is owned by the client, what is owned by the spouse, and what is out of estate
• C. Net Worth tab shows only liabilities
• D. Net Worth tab shows investment returns

Answer: (B)

Net worth in Estate Planning Reports is a comprehensive picture of ownership across the household. It shows what is owned by the client, what is owned by the spouse, and what is out of the estate (assets that pass outside the probate estate, such as those held in trusts, beneficiary-designated accounts, or jointly owned assets). This framing matters because it reveals how much wealth will be included in estate settlement versus what will transfer outside the estate, guiding planning decisions. The other statements don’t fit because they describe only the client’s assets, focus on liabilities, or emphasize investment returns, which aren’t the scope of the Net Worth tab in this context.

Net worth in Estate Planning Reports is a comprehensive picture of ownership across the household. It shows what is owned by the client, what is owned by the spouse, and what is out of the estate (assets that pass outside the probate estate, such as those held in trusts, beneficiary-designated accounts, or jointly owned assets). This framing matters because it reveals how much wealth will be included in estate settlement versus what will transfer outside the estate, guiding planning decisions. The other statements don’t fit because they describe only the client’s assets, focus on liabilities, or emphasize investment returns, which aren’t the scope of the Net Worth tab in this context.