Question

What portion of the property, co-owned by Jacob and Liza Viceroy, will be included in the gross estate of the first to die in the following independent cases?

(a.) They were married, Jacob dies first, the property was held as tenants by the entirety, and Liza paid for it.

(b.) They were not married, owned the property as joint tenants with right of survivorship, Liza died first, and Jacob paid for it.

(c.) It was community property, Jacob paid for it, and died first.

(d.) They were married, the property was owned as tenants in common (Jacob 60%, Liza 40%), Jacob died first, and had paid for it.

Answer 1

(a.) Tenancy by entirety is that form of joint tenancy where the joint owners are generally husband and wife sharing each one half of the property. In this form, the share of co-owner who dies first automatically passes on to the other co-owner. In the given case, Liza and jacob are married, the property was held as tenants by the entirety and Jacob dies first. Hence, the share oh Jacon on his death would automatically pass on to Liza. the fact that Liza paid for it will not make any difference. hence the share of jacob will not form part of his estate.

(b.) Joint tenancy with the right of survivorship means if one of the joint owners die, the share of the deceased owner will pass to the surviving co-owner or owners by operation of law and avoiding probate. The deceased owner's interest in the property simply evaporates and cannot be inherited by his or her hiers. In the given case, Jacob and liza co-owned the property as joint tenants with right of survivorship. since Liza died first, Share of Liza in the property will pass on to Jacob by operation of law and it would not form part of liza's estate. the fact that they weren't married or jacob paid for it will not make any difference.

(c.) If the property is a community property, each spouse technically owns undivided one-half interest in the property. This type of ownership applies to most property acquired by each spouse during the course of the marriage. After divorce, the community property is equally divided among the co-owners. on the death of one of the co-owner the share of property does not automatcally passes to the other co-owner. Hence in the given case, share of Jacob would be included in his estate in the event of his death.

(d.) In the case of co-ownership of property as tenants in common, in the event of death of one of the co-owners, the share of the deceased owner would would be transfered as per the will of the co-owner, hence it would form a part of the estate of the deceased. In the given case, share of jacob in the property would form part of his estate in the event of his death.