In 2001, Polly and Fred, brother and sister, purchased a condominium at a golf resort. Polly contributed 60% of the $200,000 cost; Fred contributed 40%. Polly dies in the current year when the condominium has a $300,000 value. How much is included in Polly's estate?

Question

Quizplus · Accepted Answer

The value of the condominium is $300,000 at the time of Polly's death, but only her share of the ownership should be included in her estate. Since Polly contributed 60% of the purchase price, her share of the ownership is 60% of the current value, which is $180,000. Therefore, $180,000 should be included in Polly's estate.

In 2001, Polly and Fred, Brother and Sister, Purchased a Condominium