Question

The following is a partial list of relevant items available when filing Minnie's estate tax return:

(1.) Two years before she died, Minnie sold stocks, now worth $90,000, then $65,000, for $30,000, to her daughter.

(2.) Minnie owned a summer house, worth $50,000, in joint tenancy with her sister, Rosea, who paid for it.

(3.) Minnie's home was held in a tenancy by the entirety with her husband, Dan, who paid for it, and is worth $150,000.Minnie's clothes and shoes are worth $800.

From the above, Minnie's gross estate includes $:

Answer 1

Minnie's estate will include 50%in the tenancy held by her and husband in entirety and the value of clothes and shoes as they have monetary value.

While the stocks sold to her daughter will not be included as it happened two years before she died which shows that Minnie had no interest in them at the time of death. In the case of joint tenancy of Summer house with her sister, the full payment was made by roses therefore it cannot be a part of Minnie's gross estate.

Minnie's gross estate = 800+(150000×1/2)

= 75800.