At the time of her death on September 4, 2013, Alicia held the following assets.
__________________________________________________________ ____Fair Market Value
Bonds of Emerald Tool ……………………………………………………………..……. $ 900,000
Stock in Drab …………………………………………………………………………..……… 1,100,000
Insurance policy (face amount of $400,000) on the life of her father, Mitch ………….. 80,000*
Traditional IRAs ………………………………………………………………………….…………………………. 300,000
* Cash surrender value.
Alicia was also the life tenant of a trust (fair market value of $2 million) created by her late husband Bert. (The executor of Bert’s estate had made a QTIP election.) In October, Alicia’s estate received an interest payment of $11,500 ($6,000 accrued before September 4, 2013) paid by Emerald and a cash of $9,000 from Drab. The Drab was declared on August 19 and was payable to date of record shareholders on September 3, 2013. Although Mitch survives Alicia, she is the designated beneficiary of the policy. The IRAs are distributed to Alicia’s children. What amount is included in Alicia’s gross estate?
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