2. When Morton died in 2015, he left his estate to his three children. He left stock worth $2,560,000, a home worth $545,000, a car worth $9,000, home furnishings worth $43,000, and a bank account with $7,500 in it. The total of his debts and expenses was $45,000. He also had a $3,000,000 life insurance policy on his life that was paid to his three children and a life insurance policy on his mother (alive and well, thank you). The policy on his mother was valued at $25,000 and had a face value of $150,000. A mountain cabin worth $150,000 was held in joint tenancy with his brother John. They bought the cabin for only $30,000 years ago with John paying $20,000 and Morton paying $10,000. Calculate: 

(a) the gross estate, 

(b) the taxable estate, 

(c) the probate estate, 

(d) the federal estate tax. 

Answer rating: 100% (QA)

a Gross Estate The gross estate includes all the assets owned by the deceased at the time of their d... View the full answer