Prepare an estate tax return (Form 706) for Adam Zugg of 45 Cornfield Place, Midwest City, IL 60000. Adam died October 31, 2017. He was survived by his wife, Callie, and their son, Zebulon. At the time of his death,
Prepare an estate tax return (Form 706) for Adam Zugg of 45 Cornfield Place, Midwest City, IL 60000. Adam died October 31, 2017. He was survived by his wife, Callie, and their son, Zebulon. At the time of his death, Adam was employed by a farm equipment distributor as its office manager. T he executor reports that he has discovered the property listed below.
Other information includes the following:
1. Adam owned the life insurance policy, and his estate is the beneficiary.
2. Callie is the beneficiary of the retirement plan.
3. Adam willed his stocks to Callie and the rest of his property to Zebulon.
4. Adam owed $13,200 on a car loan.
5. The estate's administrative expenses were $32,000, and his funeral expenses were $8,000.
6. Assume that the estate paid state estate taxes of $45,000.
7. Adam made his only taxable gift, $6 million taxable amount, in December 2015 and paid all the gift taxes from an account solely in his name.
8. Assume the estate's marginal income tax rate will be 35%.Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
Checking account, Adam and Callie, joint tenants with right of survivorship Stocks in public companies in the name of Adam Undeveloped land (not leased or farmed) in the name of Adam Qualified retirement plan funded by Adam's employer Face value of term life insurance policy on Adam's life Automobile in Adam's name $ 10,200 1,300,000 4,400,000 800,000 2,000,000 22,000
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The Estate Tax Return (Form 706) is a tax form that must be filed by the executor of an estate when the deceased person's taxable estate is worth more …View the full answer
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