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What is included in estate valuation?

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KEC77

Junior Member
What is the name of your state (only U.S. law)? Minnesota
When one spouse dies with a trust in place, the value of that trust is used to value the estate for tax purposes. For example, the house was titled in the name of the surving spouse and the trust of the deceased spouse. Half the value of the house is clearly part of the estate. For other property, like a car, that was titled in the individual names (not the trust), would half the value of the car be inculed in the value of the estate or would the car simply pass to the surviving spouse and not be included?
 


nextwife

Senior Member
What is the name of your state (only U.S. law)? Minnesota
When one spouse dies with a trust in place, the value of that trust is used to value the estate for tax purposes. For example, the house was titled in the name of the surving spouse and the trust of the deceased spouse. Half the value of the house is clearly part of the estate. For other property, like a car, that was titled in the individual names (not the trust), would half the value of the car be inculed in the value of the estate or would the car simply pass to the surviving spouse and not be included?

For jointly held assets, HOW they are held between the parties will impact whether that asset becomes part of the estate or passes to the surviving spouse/co-owner outside probate.

There are a number of assets that can potentially pass outside probate to a beneficiary or co-owner, depending upon how it is titled, and whether a named benefiary would be entitled to the asset outside probate (such as a 401K, IRA, life insurance etc.)
 

KEC77

Junior Member
I read the answer as the key part is "HOW" it is held will determine how it is valued in the estate. I believe that anything titled to the trust would be included in the estate. (the house is titled to the trust) The automobile is titles to the names of both spouses - the trust is not mentioned anywhere. I contend that the car does not belong to the trust or to the estate of the deceased. Does that make sense? To me, a joint checking account would follow the same rules???
 

nextwife

Senior Member
I read the answer as the key part is "HOW" it is held will determine how it is valued in the estate. I believe that anything titled to the trust would be included in the estate. (the house is titled to the trust) The automobile is titles to the names of both spouses - the trust is not mentioned anywhere. I contend that the car does not belong to the trust or to the estate of the deceased. Does that make sense? To me, a joint checking account would follow the same rules???
You are wrong. It is not only whether the trust is named, or not, but HOW the co ownership is held.

Example: I title my house in joint tenancy between myself and my husband. Upon my death, the house becomes husband's LEGALLY and is NOT part of my estate. Were it held between us as Tenants in Common, however, then my half would be part of my estate.

My IRAs and 401Ks also can pass OUTSIDE of my estate if I have named beneficiaries.

These are examples.
 
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