At the time of her death on September 4, 2016, Alicia held the following assets? Fair Market

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At the time of her death on September 4, 2016, Alicia held the following assets?

Fair Market Value

Bonds of Emerald Tool Corporation ........................... $ 900,000

Stock in Drab Corporation ....................................... 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, 2016) paid by Emerald and a cash dividend of $9,000 from Drab. The Drab dividend was declared on August 19 and was payable to date of record shareholders on September 3, 2016. 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?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For  book-img-for-question

South Western Federal Taxation 2017 Corporations, Partnerships, Estates And Trusts

ISBN: 9781305874336

40th Edition

Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young

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