American College Exam HS330 Topic 1 Question 23 Discussion

A married man is the sole owner of a small business with an estate tax value of $500,000. In addition, he and his wife own an office building as joint tenants with right of survivorship which they purchased five years ago. The building has an estate tax value of $1,500,000. They are considering dissolving the joint tenancy and retitling the building in the name of the husband as sole owner. Which of the following statements concerning this action is (are) correct?

l. lf the husband dies first, it would be easier to qualify his estate for a Section 303 redemption of his business interest.

ll. lf the husband dies first, the probate costs of his estate could be increased.