At her death Serena owned real estate worth $216,750 with her spouse in joint tenancy with the right of survivorship. Serena contributed $72,250 to the original cost of the property and her spouse contributed the remaining $144,500. What amount, if any, is included in Serena's gross estate?

Question

Quizplus · Accepted Answer

When property is held in joint tenancy with right of survivorship, the deceased person's share is not included in their gross estate because it automatically passes to the surviving joint tenant. However, since Serena contributed $72,250 to the original cost of the property, only 1/3 of the property is considered to have belonged to her. Therefore, 1/3 of the value of the property is included in her gross estate, which is $72,250 + (1/3 x $144,500) = $108,375.

At Her Death Serena Owned Real Estate Worth $216,750 with Her