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Josh Drake died on May 1, 2011. He left his entire estate, with a fair value of $6,200,000

Josh Drake died on May 1, 2011. He left his entire estate, with a fair value of $6,200,000

Josh Drake died on May 1, 2011. He left his entire estate, with a fair value of $6,200,000 to his sole surviving family member, his daughter, DeeDee.

 

Prior to any distribution of assets, Josh's estate reflected the following details:

 

Funeral expenses$11,300

Executor's fees10,800

Estate liabilities84,000

Final medical expenses40,700

 

Required:

Calculate the federal estate tax on Mr. Drake's estate. You may ignore any state-level inheritance taxes and assume that the federal estate tax rate is 45%.

19) Mason Dixon dies on November 30, 2011, leaving a valid will. The will reads as follows:

 

"I leave my boat to my son, George. I leave my automobile to my daughter, Georgia. I leave the income on my estate to be divided equally between George and Georgia. Estate expenses are to be paid from principal, not estate income. All other property, I leave to a trust to care for my wife, Gladys. Any remaining property at the time of her death is to be transferred into a trust to pay college education expenses of my grandchildren until such time as it is used up. I name my wife, Gladys, as executrix of my estate."

 

Gladys prepares an estate inventory for all assets discovered and files the appropriate notice to potential creditors on December 15.

 

Cash$ 90,000

Investments1,200,000

Interest Receivable2,000

Life Insurance Receivable500,000

Residence180,000

Automobile20,000

Boat70,000

Total$2,062,000

 

A check for interest is received of $5,000, and estate liabilities (such as funeral expenses, administrative costs, and taxes) are settled for $20,000. The will is administered.

 

Required:

Prepare a charge-discharge statement for the estate of Mason Dixon on December 31, 2011.

Tripti 07-Dec-2019

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