Which of the following assets is NOT included in the decedent's gross estate if transferred to an ILIT more than three years prior to death?

The correct answer is that assets transferred to an Irrevocable Life Insurance Trust (ILIT) more than three years prior to death are not included in the decedent's gross estate. This is rooted in the tax laws related to estate planning, particularly under the Internal Revenue Code.

When a decedent transfers ownership of assets to an ILIT, the assets are removed from their gross estate, provided that the transfer occurred more than three years before the decedent's death. This three-year rule is significant because it avoids inclusion of the transferred assets in the gross estate, thus not subjecting them to estate taxes.

In contrast, the other asset types listed—real estate owned by the decedent, a life insurance policy owned by the decedent, and cash held in checking accounts—are all considered part of the gross estate if they remain under the decedent’s ownership at the time of death. This treatment highlights the importance of transferring assets appropriately and in a timely manner when planning for an estate to minimize tax liabilities.