At her death Serena owned real estate worth $210,000 with her spouse in joint tenancy with the right of survivorship. Serena contributed $50,000 to the original cost of the property and her spouse contributed the remaining $100,000. What amount, if any, is included in Serena's gross estate?

Question

Quizplus · Accepted Answer

In joint tenancy with right of survivorship, the entire value of the property is included in the gross estate of the first to die, except to the extent the surviving spouse can prove contribution. Serena contributed $50,000 out of the total $150,000, so 1/3 of the property value ($210,000) is included in her estate, which is $70,000. However, since the property is jointly owned with a spouse, the marital deduction applies, and the amount included in the gross estate is $105,000.

At Her Death Serena Owned Real Estate Worth $210,000 with Her