Harold and Mary are married and live in a community-property state. During the marriage Harold bought a parcel of real estate for $100,000 in community funds and titled the property in his name alone. Mary died on January 30 ^th of this year and was survived by Harold, who did not remarry. The parcel of real property was worth $250,000 on January 30 ^th of this year but was only worth $220,000 at year-end. What amount, if any, is included in Mary's gross estate?

Question

Quizplus · Accepted Answer

In a community-property state, both spouses are considered to own equally any property acquired during the marriage with community funds. Therefore, even though the property was titled in Harold's name alone, Mary had a 50% ownership interest in the property. At Mary's death, her share of the property's value is included in her gross estate. Since the property was worth $250,000 at the time of her death, Mary's 50% share amounts to $125,000.

Harold and Mary Are Married and Live in a Community-Property