Question

Walter Campbell was a very giving person all of his life. His surviving children speak frequently of his generosity not only toward his deceased wife but also too many beyond his immediate family. Unfortunately, Walter’s will prove to be more generous than his estate was able to support. Provisions of Walter’s will include the following:
a. My entire collection of Navajo rugs and Acoma pottery (fair value at date of death is $120,000) is to be given to the Museum of Northern New Mexico, a charitable organization.
b. My residence (fair value at date of death is $550,000) is to be given to my younger brother Thomas along with $2,500,000 from my brokerage account at Wachovia Securities (fair value at date of death is $2,200,000).
c. My brokerage account at Schmidt Investment Services (fair value at date of death is $900,000) is to be liquidated with $500,000 going to each of my two sisters.
d. My collection of antique pistols (fair value at date of death is $85,000) is to be given to my son-in-law Eric Jacobsen.
e. My hunting land in Buffalo County, Wisconsin (fair value at date of death is $750,000), is to be sold and my uncle is to receive $700,000 of the proceeds.
f. Of the proceeds from my life insurance policies (fair value at date of death is $250,000), $200,000 is to be given to First Church of Brookfield, a charitable organization.
g. Each of my eight grandchildren is to receive $50,000, and each of my three children is to receive $400,000.
h. The balance of my assets is to be divided equally between the Kohler Arts Center in Kohler, Wisconsin, and the Wisconsin Maritime Museum in Manitowoc, Wisconsin.
In addition to the above listed items, all other assets of Walter’s estate were liquidated for a total amount of $1,500,000 cash. Allowable deductions, excluding charitable donations, against his gross estate amounted to $235,000. All calculations of estate tax should use the rates and unified credit set forth in the text.
Required
Prepare a schedule to determine who will receive a general legacy from Walter’s estate and the amount of each legacy.


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  • CreatedApril 13, 2015
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