What kind of property is excluded from a decedent's estate due to prior gifting?

The correct choice focuses on inter vivos gifts, which are gifts made during a person's lifetime and are significant in the context of estate planning and probate. When a person makes an inter vivos gift, that property is transferred to the recipient immediately and is therefore not included in the decedent's estate at the time of death. This is crucial because it can affect the overall distribution of the estate and the total value that will be subject to probate.

In many jurisdictions, certain inter vivos gifts may be excluded from the estate for the purpose of calculating estate taxes as well. Additionally, these gifts do not contribute to the decedent's estate liabilities upon death because they no longer belong to the decedent. Understanding the concept of inter vivos gifts helps clarify the distinction between what is considered part of the estate and what is not, reflecting the intent behind the transferring of property while the donor is still alive.

In contrast, creditors typically have claims on the decedent's estate, which can include property that the decedent owned at time of death, rather than gifts made prior. Probate property refers to assets that are directed through the probate process, which does not apply to inter vivos gifts. Real estate holdings can be subject to estate proceedings if they were not gifted away, therefore they