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Greta and Greg were married for 15 years and have a daughter, Elise. Soon after they were married, they bought their first home for $100,000.

Greta and Greg were married for 15 years and have a daughter, Elise. Soon after they were married, they bought their first home for $100,000. Last year Greg was killed in a car accident. In his will, he left everything to his daughter Elise. The value of the home when Greg died was $800,000. Please fill in the last column of the chart.

Assume that they do not live in a community property state, Greta contributed $25,000 and Greg contributed $75,000 to the original purchase of the house, and that the house was titled Tenants in Common.

Assume that they do not live in a community property state, that Greta contributed $25,000 and Greg contributed $75,000 to the original purchase of the house, and the house was titled Tenancy by the Entirety.

Assume that they LIVE IN WISCONSIN, A COMMUNITY PROPERTY STATE, and purchased the house with community funds.

Assume that they LIVE IN WISCONSIN, A COMMUNITY PROPERTY STATE, but Greg purchased the house with separate funds and titled the house Fee Simple Sole Owner.

Tenants in Common

Tenancy by the Entirety

COMMUNITY PROPERTY STATE with community funds

COMMUNITY PROPERTY STATE separate funds Sole Owner

Amount in Greg's Gross Estate

$600,000

$400,000

$400,000

Amount in Greg's Probate Estate

$600,000

$0

$400,000

Who receives Gregs ownership stake?

Elise Greta Elise

Greta's tax basis in the house after Gregs death

$25,000

$450,000

$400,000

Elise's tax basis in the house after Gregs death

$600,000

N/A

$400,000

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