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Author: FoolInThePinez Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121563  
Subject: Estate tax pickle Date: 9/20/2000 7:07 PM
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The situation:

Mother and Daughter 1 are JTROS on an account worth $500k.
There are 4 daughters altogether. The other 3 daughters are not
named on the account.

Mother passes on just recently.

Mother's estate ( from federal estate tax point of view ) is
( according to the lawyer )
this $500k account + some IRAs + a house. This total is > $700k.
( This total is after all possible marital deductions
are accounted for. Mother was married at the time of death. )
( This $700k is to be distributed evenly among the daughters.
Mother's spouse gets his share through marriage deductions. )

First question: how come the $500k account is 100% included in the
federal
estate? Since it is JTROS, I would have thought that only
50% of the $500k would have been in the estate ( thus
bringing the estate total below the magic $675k number ).
It seems that Penna, where Mother lived, only counts 50% of this
account for its tax calculation.

Next question: What tax lessons can be learned from this
for future generations ?

Next question: This $500k account was created Foolishly from
an inheritance that Mother received wayback. Does this piece of
information mean anything in the federal tax calculation ?

FoolInThePinez
--
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