American College Exam HS330 Topic 1 Question 66 Discussion

Actual exam question for American College's HS330 exam

Question #: 66
Topic #: 1

All the following statements concerning real property ownership by married couples as joint tenants with right of survivorship are correct EXCEPT:

AThe deceased spouse's interest in the property qualifies for the marital deduction since it passes outright to the surviving spouse.

BAll benefits of ownership remain available to the surviving spouse without interruption during the administration of the deceased spouse's estate.

CJointly held property between spouses does not pass through the probate estate of the first spouse to die.

DIn common-law states the total value of the property receives a stepped-up tax basis in the estate of the first spouse to die.

Show Suggested Answer

Suggested Answer: D

by Jani at Feb 26, 2023, 04:37 PM

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Monte

8 days ago

Hmm, the correct answer must be D. I mean, who wouldn't want a stepped-up tax basis? That's like the holy grail of property ownership!

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I think the correct answer is D. In common-law states, the total value of the property does not receive a stepped-up tax basis in the estate of the first spouse to die. This seems counterintuitive, but that's the exception I guess.

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Jamal

14 days ago

But doesn't joint tenancy with right of survivorship avoid probate, so C must be the correct answer?

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Broderick

15 days ago

I disagree, I believe the answer is A.

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Jamal

24 days ago

I think the answer is D.

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American College Exam HS330 Topic 1 Question 66 Discussion

Contribute your Thoughts:

Monte

Arlene

Jamal

Broderick

Jamal