Here is a good starters article and then we'll get a little more specific:
may be inappropriate
The typical form of home ownership among married couples is a joint tenancy with right of survivorship or, in some states, a tenancy by the entirety. In either case, each spouse owns an undivided interestundivided interest in the property - and on the first spouse's death, the entire property automatically passes to the survivor. This survivorship feature makes joint tenancy one of the simplest ways of transferring an interest in property. In some situations, however, the surviving spouse's estate may pay a high price in transfer taxes for that simplicity. Although the unlimited marital deduction ensures that the home will pass to the survivor free of any transfer taxes, the property will be subject to estate tax in the survivor's estate. For estate planning purposes, it may make more sense to have the first spouse's interest pass to a nonmarital or family trust or to other persons. In such cases, the first spouse's estate will escape estate tax on that interest through use of the unified credit, while the survivor's estate will avoid estate tax on that interest because it is not part of the survivor's estate.
Occasionally, the surviving spouse will not be aware of the possible adverse estate tax consequences of a joint tenancy until after the first spouse's death. By executing a qualified disclaimer of the deceased spouse's interest in the joint tenancy property, the interest will not pass to the survivor and, therefore, will not be part of the surviving spouse's estate. The survivor will retain only the one-half interest in the property that he held prior to the decedent's death.
1. No, $0 (ie, nothing). She is not receiving the property, for she has disclaimed it (See IRC 2518 below, and also this quote from the Form 706 instructions, along with Schedule A of Form 706 for the 50% interest in the real estate that is included in the estate and on Schedule E per IRC 2040(b)(2), also below).
2. $25,000 on both B and M (part 1 of E will list the $50K total and $25K included on line 1b).
"1b Amounts included in gross estate (one-half of line 1a)"
"On Schedule B, list the stocks and bonds included in the decedents gross estate."
"You may list on Schedule M only those interests that the
surviving spouse takes:
1. As the decedent's legatee, devisee, heir, or donee;
2. As the decedent's surviving tenant by the entirety or
§ 2040. Joint interests
How Current is This?
(a) General rule The value of the gross estate shall include the value of all property to the extent of the interest therein held as joint tenants with right of survivorship by the decedent and any other person, or as tenants by the entirety by the decedent and spouse, or deposited, with any person carrying on the banking business, in their joint names and payable to either or the survivor, except such part thereof as may be shown to have originally belonged to such other person and never to have been received or acquired by the latter from the decedent for less than an adequate and full consideration in money or money's worth.....:
(b) Certain joint interests of husband and wife
(1) Interests of spouse excluded from gross estate Notwithstanding subsection (a), in the case of any qualified joint interest, the value included in the gross estate with respect to such interest by reason of this section is one-half of the value of such qualified joint interest.
(2) Qualified joint interest defined For purposes of paragraph (1), the term "qualified joint interest" means any interest in property held by the decedent and the decedent's spouse as-
(A) tenants by the entirety, or
(B) joint tenants with right of survivorship, but only if the decedent and the spouse of the decedent are the only joint tenants.
§ 2518. Disclaimers
How Current is This?
(a) General rule For purposes of this subtitle, if a person makes a qualified disclaimer with respect to any interest in property, this subtitle shall apply with respect to such interest as if the interest had never been transferred to such person.
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