Re: Retained life estate

Perry1 20 years ago

"Stuart A. Bronstein"

So you shouldn't try to give legal advice if you don't
> really know the answer, particularly if you are basing
> your advice on incomplete information.

The quote of the OP appeared to drop off in repeated posting but the answer is NOT based on incomplete information, just a pertinent example. In the example, the son's estate tax calculation does NOT include any amount of the father's jointly held real estate if the son didn't contribute anything. (MOD - sorry to keep flogging a dead horse!)

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Dave W. 20 years ago

"Stuart A. Bronstein" wrote

There's not much more I can do to for you Stu. Maybe I could do more research on court cases or go over the federal tax "tracing rules" but I get the feeling you just don't believe me! But it's absolutely true (and it's discussed in other "mass market" estate books) with the example of a widower who adds a son to the title on a personal residence and the son dies first but didn't contribute anything, with the consequence of the son's federal estate tax valuation being $ - 0-. I mentioned this once to an estate lawyer and she really did ask what happens if both die in plane crash! All I can say let's just agree to disagree -- The best part of this discussions is you can look at mass market E A estate planning books to correct future clients with estate planning misconceptions! (Maybe I'm been reading "Estate Planning for Dummies" !)

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Stuart A. Bronstein 20 years ago

And that is absolutely correct - as long as the son was added to the title as a joint tenant. Section 2036 specifically requires that result. But if the son is added to the title in any other way, that is not the result. We were specifically talking about the son being added as a remainderman after the mother retained a life estate. In that case, if the son were to die first (which was his question) his share in the property would be included in his estate. In support of my position, Drew cited Treasure Regulation

20-2031-7, which says, among other things, "the fair market value of annuities, life estates, terms of years, remainders, and reversionary interests for estates of decedents is the present value of such interests,... " If the son were to die first, he'd be the decedent. And his remainder interest would be included in his estate at the present value of his interest on the date of his death. Stu

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Dave W. 20 years ago

The books I was quoting were for joint tenants and the estate tax - not the exact situation with the original poster! My bad!

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