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Jonathan and Clark (Father and son) purchased land for $600,000 as joint tenants with right of...

Jonathan and Clark (Father and son) purchased land for $600,000 as joint tenants with right of survivorship. Of the $600,000 purchase price, Jonathan provided $300,000 and Clark $300,000 (of which $200,000 had been received as a gift from Jonathan). Clark dies first when the land is worth $3,000,000. As to the land, how much is included in Clark’s gross estate?

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Answer #1

- The land is jointly owned with RIGHT OF SURVIVORSHIP.

-Under right of survivorship, in case a property is jointly owned and one joint holder dies, then all the right in the asset will be transferred to the owner who alives or who survives.

-in this case the Land is owned jointly by Jonathan and Clark. Clark dies first when the land is worth $30000000. Hence all the rights in the land will be transferred to Jonathan and no amount will be included in Clarks gross estate.

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