Prior to her death in 2021, Elfrieda made lifetime taxable gifts of $34,000. At her death, she
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Question:
Prior to her death in 2021, Elfrieda made lifetime taxable gifts of $34,000. At her death, she was survived by her husband and daughter and owned the following property interests.
Sole ownership:
- Life insurance on her husband's life with a death benefit of $500,000 and a replacement cost of $120,000, with her children as the beneficiaries
- A portfolio of stocks, bonds, and CDs valued at $8,000,000
- Personal residence with a fair market value of $500,000
Joint ownership:
- With her husband: household furnishings, personal property, bank accounts, and automobiles worth a total of $800,000
- With her daughter: a vacation condo valued at $400,000 for which her executor has records showing a 20% contribution by her daughter
Her will bequeaths the personal residence outright to her husband with the rest and remainder of her estate to her daughter. She had debts of $6,000 and administrative costs of $24,000.
Which one of the following amounts, if any, most closely approximates Elfrieda's estate tax liability? Use the Unified Federal Estate and Gift Tax Rates table.
A) $10,000
B) $0
C) $40,000
D) $30,000
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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