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:
Final medical expenses40,700
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.
Life Insurance Receivable500,000
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.
Prepare a charge-discharge statement for the estate of Mason Dixon on December 31, 2011.