This means that even if you own a second home in France, its value will be included as part of your estate. Your estate may, however, be able to get a credit for any foreign death taxes it has to pay. Your estate may also include certain types of income, such as dividends, interest, rents and compensation, including contingent fees. There is a special income tax deduction for estate taxes attributable to the inclusion of IRD in the gross estate. The one-half interest arises when the asset is acquired and continues even if the couple subsequently moves to a state that doesn't recognize community property.
Spouses can, however, receive property separately by gift or inheritance.
The entire value of property held by you and any other person as joint tenants with a right of survivorship will also be included in your estate. The estate of someone who died after 1981 is entitled to a full basis step-up for real property purchased before 1977 and for which the surviving spouse supplied none of the consideration. This can provide a significant benefit for married individuals who jointly own real property acquired before 1977. Your estate will also include the value of any annuity that still has residual value after your death, for example, one that is payable to a beneficiary who survives you. Powers of appointment Any property over which you have a general power of appointment at the time of your death will also be included in your estate.