Diane loaned $250,000 to her son, Tom, five years before her death. Tom signed a promissory note,
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Question:
a. Is the promissory note included in Diane’s gross estate? If so, at what value?
b. What if the note required interest at 8 percent per year, payable on December 15 each year? Assume that Tom has paid interest each year but has not repaid any principal. Diane dies on December 14. What is in her gross estate?
c. What if Diane’s will directs that all debts owed to her be canceled?
d. What if there was only an oral agreement and no promissory note?
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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