Question

Which of the following items of property would be included in the gross estate of a decedent who died in 2017?

1. Clothes and jewelry of the decedent.

2. Cash of $400,000 given to decedent's friend in 2015.

3. No gift tax was paid on the transfer.

4. Land purchased by decedent and held as joint tenants with rights of survivor‐ship with decedent's brother.

1, 2, and 3

1 and 3

1 and 2

2 and 3

Answer 1

Answer=

Cloths and jewelry of the decedent and,

Land purchased by decedent and held as joint tenants with rights of survivor-ship with decedents brother.

Explanation =

All assets owned by the decedent as at the time of death are included in the gross estate. Even though the land was owned jointly, since it is held with a right of survivorship 100% of the value of the land is included in the estate of the first co- owener to die.

The only exception to this rule is if the other co-owner had paid for a percentage of the land when originally purchased. In that case the percentage purchased by this co-owner would be excluded from the gross estate.

The cash is excluded as it was not owned at the time of death

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