Jack and Jill are not married and own farm land titled as Jo

Jack and Jill are not married and own farm land titled as Joint Tenants with Rights of Survivorship. Jack originally contributed $90,000 and Jill contributed $60,000 towards the purchase price. The land is currently valued at $800,000 and each of them has a 50% interest in the property. If Jack died today, what amount of the value of the farm land would be included in his gross estate?

a. $90,000\"

\"b. $400,000\"

\"c. $480,000\"

\"d. $800,000\"

Solution

b. $400,000 (50% * $800,000) would be included in his present gross estate of $400,000 (50% * $800,000).