Estate Tax Net Exclusion

No. But I like your thinking!

Wouldn't that depend on the exact nature of the holding? As I understand it, though I could be wrong, "joint tenants with right of survivorship" does exclude the house from the decedent's estate.

If you're talking about estate tax (and remember there's a lifetimes gift/estate tax exemption of $11,700,000 for people who die this year), the rule is this: the first joint owner to die is presumed to be the owner of 100% of the jointly owned property, so it's all included in his estate, except to the extent that the other joint tenant(s) can show that they contributed to the purchase.

So, for example, if the property was worth $1 million on the date of death, that's all included in the estate of the first to die, unless the others prove that they contributed to the purchase. If they can show that they paid for half the purchase price, then only half the value is included in the gross estate.

Actually it's the opposite. As I wrote elsewhere in response to this question, the entire value of the property is included in the estate of the first joint tenant to die, unless the other joint tenant(s) can show that they actually contributed to the purchase. If they did, then the amount included in the estate would be based on the percentage the decedent paid toward the purchase.

Just to clarify a bit for anyone reading:

OP said "joint owners". That may or may not mean held as "joint tenants with right of survivorship".

Stuart's replies pertain to the case where the property is held as joint tenants with right of survivorship.

If OP meant, by "joint owners"m that the property was held as tenants in common, then the decedent's value in the property is included in decedent's estate. Decedent's value may be less than his proportionate share of the value of the property as a whole, due to partnership discount valuation.

To clarify, property is held as Joint Tenants with Right of Survivorship. If property is held in Joint Tenancy, it moves out of the estate upon death of the person who died. It stands to reason that it should be excluded from the gross estate of the deceased.

What's in or out of the probate estate is purely a state law issue and has nothing to do with federal taxes. You're right, though, that in many cases when someone has rights in property that terminate on his death, it is not included in his gross estate. These are referred teo as "terminable interests." However joint tenancy is not considered a terminable interest, though it certainly looks like one.

Stu, I was wondering if there is a list of excluded assets from the gross estate. Your point that state laws may come into play is an interesting point which I have not considered yet.

The rules of what is included or excluded from the gross estate are contained in sections 2031 through 2044 of the US Tax Code, which can be found here:

Thanks Stu. Your help is sincerely apprecaited.