Alex, an unmarried father of three children, is an employee of Computing, Inc. Computing, Inc. provides Alex with many benefits, including use of a company-owned car, health insurance, and a plan that will pay - in the event of an employee's death - one year's annual salary in a lump sum to a surviving spouse if there is one, and if no surviving spouse to any surviving children in equal shares, and if there are no surviving children then to no one (i.e., there is no pay out to anyone). Alex dies this year. What are Alex's estate tax consequences as a result of the foregoing benefits? 

Unless otherwise provided, assume the following:

A. No inclusion

B. Only the value of the car will be included in the gross estate

C. Only the value of one year's annual salary will be included in the gross estate

D. Value of the car AND one year's annual salary will be included in the gross estate

Answer rating: 100% (QA)

In this scenario the estate tax consequences for Alex depend on the nature of the benefits provided ... View the full answer