Elsa and Ludvik Hansen have $6.8 million of assets: $2,400,000 in Ludvik's name, $2,400,000 in Elsa's name, and $2 million of jointly owned property. Their jointly owned property is titled using joint tenancy with right of survivorship. Elsa also co-owns a $500,000 beach house with her sister as tenants in common.
a. What are the advantages or disadvantages of the Hansens' plan to rely on the unlimited marital deduction?
b. What could the Hansens do to reduce their expected estate tax liability prior to either spouse's death?
c. Who would receive Elsa's half share in the beach house if she were to die?