A. Except to the extent included in the augmented estate under § 64.2-308.5 or 64.2-308.7, the value of the augmented estate includes the value of:
1. Property that was owned by the decedent’s surviving spouse at the decedent’s death, including: a. The surviving spouse’s fractional interest in property held in joint tenancy with the right of survivorship; b. The surviving spouse’s ownership interest in property or accounts held in co-ownership registration with the right of survivorship; and c. Property that passed to the surviving spouse by reason of the decedent’s death, but not including the spouse’s right to homestead allowance, family allowance, exempt property, or payments under the federal social security system.
2. Property that would have been included in the surviving spouse’s non-probate transfers to others, other than the spouse’s fractional and ownership interests included under subdivision 1 a or b, had the spouse been the decedent.
B. Property included under this section is valued at the decedent’s death, taking the fact that the decedent predeceased the spouse into account, but, for purposes of subdivision A 1 a or b, the values of the spouse’s fractional and ownership interests are determined immediately before the decedent’s death if the decedent was then a joint tenant or a co-owner of the property or accounts. For purposes of subdivision A 2, proceeds of insurance that would have been included in the spouse’s non-probate transfers to others under subdivision 1 d of § 64.2-308.6 are not valued as if the spouse were deceased.
C. The value of property included under this section is reduced by enforceable claims against the surviving spouse.