Ned and Maude were married in 2003. They have two children, Rod (12) and Todd (10). Ned and Maude purchased a home for $350,000 in 2005. In 2019, Maude was killed in a freak accident at a race track. Maude's will specified that her estate would be equally divided between her two sons, Rod and Todd. At the time of her death, the home was valued at $415,000.

Please complete the table based on the ownership assumptions provided.

Ownership	Amount in Gross Estate (Maude)	Amount in Probate Estate (Maude)	Who receives Maude’s ownership in the home	Ned’s Income Tax basis after Maude’s death	Rod and Todd’s Income tax basis after Maude’s death
Sole Owner Assume that Ned paid for the house with $350,000 of separate funds and they live in Illinois
Tenancy in Common Assume that Maude contributed $200,000 and Ned contributed $150,000 to the purchase and they live in Illinois
Joint Tenancy with Rights of Survivorship Assume that Maude contributed $200,000 and Ned contributed $150,000 to the purchase and they live in Illinois
Tenancy by the Entirety Assume that Maude contributed $200,000 and Ned contributed $150,000 to the purchase and they live in Illinois
Community Property Assume purchase was made with community funds and they live in Wisconsin

Answer rating: 100% (QA)

Ownership Breakdown of Maudes Estate and Home Ownership Type Amount in Gross Estate Maude Amount in ... View the full answer