ANSWER QEUSTING 3 PLEASE

Ted Jones, an unmarried individual, died in 2021 at the age of 76. He was survived by two adult children, Eunice and Marcus. Upon investigating Ted's records and appraising personal effects, Ted's executor discovers the following:

1) A rental duplex held in joint tenancy with right of survivorship with his daughter Eunice. Ted provided 75% of the funds to acquire and improve the property and Eunice provided 25% of the funds. The property had a basis to Ted and Eunice (combined) of $480,000 but was worth $800,000 at death.

2) Pension plan with a date of death balance of $700,000. The plan has a "pay on death" designation to Eunice and Marcus in equal shares. No contributions or earnings of this plan have ever been taxed.

3) An investment account with a date of death balance of $9,000,000; this account has a pay-on-death designation to Eunice and Marcus in equal shares.

4) Personal effects worth $40,000 and two automobiles titled in his name worth a combined amount of $75,000.

5) A bank account and certificates of deposit in his name alone with a date of death balance of $600,000.

6) A personal residence titled in his name alone with a date of death value of $500,000.

7) A life insurance policy purchased by him with a $600,000 death benefit. The proceeds are payable in equal shares to Eunice and Marcus.

8) A life income estate in a trust created by his father; the date of death value of this trust is $2,000,000. Upon Ted's death, the principal of this trust passes to Eunice and Marcus in accordance with his father's directives for the trust instrument. Ted did not have a power of appointment to any part of this trust. Income owed to Ted at death from this trust is $50,000.

9) Marcus purchased an insurance policy on the life of Ted. The proceeds payable from this policy are $100,000 and they are paid to Marcus.

What is the amount of Ted's "probate" estate?

DO NOT USE COMMAS OR DOLLAR SIGNS IN YOUR ANSWER!

Answer:

1290000

Question 2

0 / 1 point

Same Facts

Ted Jones, an unmarried individual, died in 2021 at the age of 76. He was survived by two adult children, Eunice and Marcus. Upon investigating Ted's records and appraising personal effects, Ted's executor discovers the following:

1) A rental duplex held in joint tenancy with right of survivorship with his daughter Eunice. Ted provided 75% of the funds to acquire and improve the property and Eunice provided 25% of the funds. The property had a basis to Ted and Eunice (combined) of $480,000 but was worth $800,000 at death.

2) Pension plan with a date of death balance of $700,000. The plan has a "pay on death" designation to Eunice and Marcus in equal shares. No contributions or earnings of this plan have ever been taxed.

3) An investment account with a date of death balance of $9,000,000; this account has a pay-on-death designation to Eunice and Marcus in equal shares.

4) Personal effects worth $40,000 and two automobiles titled in his name worth a combined amount of $75,000.

5) A bank account and certificates of deposit in his name alone with a date of death balance of $600,000.

6) A personal residence titled in his name alone with a date of death value of $500,000.

7) A life insurance policy purchased by him with a $600,000 death benefit. The proceeds are payable in equal shares to Eunice and Marcus.

8) A life income estate in a trust created by his father; the date of death value of this trust is $2,000,000. Upon Ted's death, the principal of this trust passes to Eunice and Marcus in accordance with his father's directives for the trust instrument. Income owed to Ted at death from this trust is $50,000.

9) Marcus purchased an insurance policy on the life of Ted. The proceeds payable from this policy are $100,000. The proceeds are payable to Marcus.

What is the amount of Ted's gross estate for estate tax purposes (without considering taxable gifts during lifetime)?

DO NOT USE COMMAS OR DOLLAR SIGNS IN YOUR ANSWER!

Refer to your previous answer determining the value of Ted's gross estate for estate tax purposes. Assume the following: 1) Claims, debts, funeral expenses, and expenses of administration for this estate are $150,000. 2) State death taxes are $200,000. 3) Ted made taxable gifts of $1,000,000 during his lifetime. He elected to use his unified credit instead of paying any gift tax. 4) Ted's will directs a bequest to his prep school, Berkley Hall, of $200,000. 5) The remainder of his gross estate passes to his two children. Using 2021 amounts of exclusion/unified credit, how much estate tax will Ted's estate owe? If you compute no estate tax due, enter 0 DO NOT USE COMMAS OR DOLLAR SIGNS IN YOUR ANSWER!