Four years ago, David gave land to Mike that he purchased for $70,000, which is presently worth $100,000. Three years ago, Mike exchanged the land (then worth $150,000)along with a $100,000 cash contribution made by David for a new piece of land worth $250,000. The new land is titled with David and Mike as joint tenants with the right of survivorship. When Mike dies this year, the land is worth $300,000. Mike's estate will include

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When Mike dies, the entire value of the land ($300,000) passes to David by right of survivorship, a characteristic of joint tenancy. Therefore, none of the land's value is included in Mike's estate.

Four Years Ago, David Gave Land to Mike That He