For a house valued at 400,000 owned as joint tenancy with a spouse, the amount included in the decedent's gross estate for estate tax purposes is:

For a house valued at 400,000 owned as joint tenancy with a spouse, the amount included in the decedent's gross estate for estate tax purposes is:

• A. 200,000
• B. 400,000
• C. 100,000
• D. 0

Answer: (A)

When property is owned jointly with right of survivorship, the decedent’s gross estate includes only the portion of the property that the decedent actually owned at death. The survivor automatically inherits the other portion, outside the estate. Here, the house is worth 400,000 and owned by two people with equal interests. The decedent’s share is half of that, or 200,000, which is the amount included in the gross estate for estate tax purposes. The surviving spouse takes the other half outside the estate, so it isn’t counted. The full 400,000 would be included only if the decedent had owned the entire property or there were no survivorship arrangement.

When property is owned jointly with right of survivorship, the decedent’s gross estate includes only the portion of the property that the decedent actually owned at death. The survivor automatically inherits the other portion, outside the estate. Here, the house is worth 400,000 and owned by two people with equal interests. The decedent’s share is half of that, or 200,000, which is the amount included in the gross estate for estate tax purposes. The surviving spouse takes the other half outside the estate, so it isn’t counted. The full 400,000 would be included only if the decedent had owned the entire property or there were no survivorship arrangement.