Exam 14: Transfer Taxes and Wealth Planning

At her death Serena owned real estate worth $210,000 with her spouse in joint tenancy with the right of survivorship. Serena contributed $50,000 to the original cost of the property and her spouse contributed the remaining $100,000. What amount, if any, is included in Serena's gross estate?

Joshua and David purchased real property for $500,000 as equal tenants in common. Although they are listed as equal co-owners, Joshua was only able to provide $200,000 of the purchase price. David treated the additional $100,000 of his contribution to the purchase price as a gift to Joshua. If the property is worth $2.5 million at Joshua's death, what amount would be included in Joshua's estate?

Sophia is single and owns the following property: Sophia owns the real property in joint tenancy with Daniel. They purchased the property several years ago for $2.2 million. Sophia was only able to provide $440,000 of the purchase price. If Sophia dies, what is the amount of her gross estate?

Gabriel had a taxable estate of $18.4 million when he died in 2020. Calculate the amount of estate tax due (if any) if Gabriel made prior taxable gifts in 2005 totaling $1 million, at which time he claimed an applicable credit of $1 million and paid no tax. Gabriel was unmarried at his death. (Use Exhibit 14-1.)

Jayden gave Olivia a ring when she agreed to marry him. The ring is a family heirloom valued at $34,750. What is the amount of the taxable gift?