What is an augmented estate and how is it divided?

Full question:

What is the definition of an "augmented estate" when the surviving spouse shall have one-half of such augmented estate?

• Category: Wills and Estates
• Date: 04/07/2025
• State: Virginia

Answer:

The term "augmented estate" refers to the total estate that passes through testate or intestate succession, including both real and personal property. This calculation occurs after paying certain expenses such as funeral costs, administrative charges, and debts, but it excludes federal or state transfer taxes. The augmented estate also includes additional amounts as follows:

1. The value of property owned by the surviving spouse at the decedent's death, which was acquired from the decedent without full monetary consideration, excluding tangible personal property received as a gift.
2. The value of property received by the surviving spouse from the decedent without full monetary consideration, which was transferred to someone else during the marriage.
3. The value of property transferred by the decedent to anyone other than a bona fide purchaser during the marriage, if the decedent did not receive adequate consideration for the transfer. This includes certain types of transfers, such as those where the decedent retained rights to income or enjoyment of the property, or transfers made within the year of the decedent's death exceeding $10,000.

However, certain exclusions apply. The augmented estate does not include:

• Property transferred by the decedent during marriage with the written consent of the surviving spouse.
• Property received by the decedent as a gift or inheritance before or during the marriage from someone other than the surviving spouse, as long as it was maintained as separate property.
• Irrevocable transfers made to anyone other than the surviving spouse before January 1, 1991.

Property values are assessed as of the decedent's death, except for irrevocably transferred property, which is valued when the transferee gains possession. Various valuation methods apply to life estates, insurance policies, and joint tenancies.

For further details, refer to the relevant Virginia statute: (Va. Code § 64.1-16.1).