In 2015, Thalia purchases land for $900,000 and lists title in the names of her daughters as follows: "April and Theresa, joint tenants with right of survivorship." In 2017, April and Theresa purchase an apartment building for $1 million as equal tenants in common? April furnished $400,000 and Theresa furnished $600,000 of the cost. April dies first in 2018 when the land is worth $1.5 million and the apartment building is worth $2 million. One of the results of these transactions is:

Question

Quizplus · Accepted Answer

When Thalia purchased the land, she listed April and Theresa as joint tenants with right of survivorship, meaning that upon April's death, Theresa automatically becomes the sole owner of the land. Therefore, none of the land is included in April's gross estate.

However, April's portion of the apartment building, which she owned as a tenant in common with Theresa, is included in her gross estate. April contributed 40% of the purchase price, which means her share of the property is worth $800,000 at the time of her death. Additionally, April's share of the apartment building has appreciated from $400,000 to $800,000, so her gross estate includes $1.75 million ($800,000 + $900,000) as to these properties.

In 2015, Thalia Purchases Land for $900,000 and Lists Title