Neal and His Wife Faye Reside in Texas, a Community

question 4

Multiple Choice

Neal and his wife Faye reside in Texas, a community property state. Their community property consists of real estate (adjusted basis of $800,000? fair market value of $6 million) and personal property (adjusted basis of $390,000? fair market value of $295,000) . Neal dies first and leaves his estate to Faye. What is Faye's basis in the property after Neal's death?

• A) $800,000 real estate and $295,000 personal property.
• B) $800,000 real estate and $390,000 personal property.
• C) $3,400,000 real estate and $295,000 personal property.
• D) $6,000,000 real estate and $295,000 personal property.
• E) None of the above.

---

Definitions:

Aging in Place

The capacity to reside safely, independently, and comfortably in one's own home and community, irrespective of one's age, income, or level of ability.

Assisted Living

A residential option for seniors who need help with some daily activities but do not require full-time nursing care.

Nursing Home

A residential facility providing specialized care and assistance for elderly or disabled individuals who cannot care for themselves independently.

Cognitive Decline

Refers to the gradual loss of cognitive functions, including memory, attention, and decision-making abilities, often associated with aging.