Which type of property is included in the gross estate of the first spouse to die under joint tenancy?

In the context of estate planning, when a property is held in joint tenancy, it means that two or more individuals own the property together, with rights to survivorship. When one spouse dies, the property automatically passes to the surviving spouse without going through probate.

In determining what portion of the joint tenancy property is included in the gross estate of the deceased spouse, the relevant principle is that only the decedent's interest in the property is included in their gross estate. For joint tenancy property owned by two spouses, it is typically considered that each spouse has an equal interest in the property. Therefore, for the first spouse to die, only half of the value of the property is included in their gross estate at death.

This valuation reflects the notion that each spouse effectively owns 50% of the property, and thus only this portion is subject to estate taxes or included when calculating the gross estate of the deceased spouse.

Therefore, the correct answer highlights that half of the value of the joint tenancy property is included in the gross estate of the first spouse to die.