Danny and Julie, a married couple, decided to sell their community property home in a community property state, and reinvest their sale proceeds in a new home in a common law state with only Julie's name on the title. Which statement below is correct? A) The new home will be considered community property, but only if Julie places Danny’s name on the title as tenancy by the entirety. B) The new home will be considered the separate property of Julie. C) The new home will be considered community property. D)

Danny and Julie, a married couple, decided to sell their community property home in a community property state, and reinvest their sale proceeds in a new home in a common law state with only Julie's name on the title. Which statement below is correct? A) The new home will be considered community property, but only if Julie places Danny’s name on the title as tenancy by the entirety. B) The new home will be considered the separate property of Julie. C) The new home will be considered community property. D)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter12: Nonrecognition Transactions

Section: Chapter Questions

Problem 42IIP

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Paul and Marie Weir moved from a community property state to a common law property state last year. Shortly before their move, Paul used funds from the family bank account to purchase an airplane solely in his name. After they moved, Paul sold the residence that they had acquired during their marriage and used those funds to purchase a new residence of an equivalent value solely in his own name. Paul and Marie entered into a spousal agreement specifying that all household furnishings belong to Marie and the airplane belongs to Paul. Last month, Paul died. What are the estate planning implications of the Weirs' move from the community property state to a common law property state? A)The airplane was never considered to be community property. B)The new residence is still considered to be community property. C)All of their assets remain community property because spousal agreements are invalid in community property states. D)The ownership interests in all of the property are…
Paul and Marie Weir moved from a community property state to a common law property state last year. Shortly before their move, Paul used funds from the family bank account to purchase an airplane solely in his name. After they moved, Paul sold the residence that they had acquired during their marriage and used those funds to purchase a new residence of an equivalent value solely in his own name. Paul and Marie entered into a spousal agreement specifying that all household furnishings belong to Marie and the airplane belongs to Paul. Last month, Paul died. What are the estate planning implications of the Weirs' move from the community property state to a common law property state?
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