Betty dies on February 20, 2013. Her estate consisted of the following assets, all valued as of her date death: Stock with a basis of $40,000 and a fair market value of $200,000 Home valued at $1,500,000 and a basis of $490,000
Cash of $70,000
Life insurance on Betty's life owned by her daughter with a $500,000 face value
What is Betty's gross estate?

Question

Quizplus · Accepted Answer

To calculate Betty's gross estate, we need to add up the fair market value of all of her assets at the time of her death:

$200,000 (stock) + $1,500,000 (home) + $70,000 (cash) + $500,000 (life insurance) = $2,270,000

Therefore, the correct answer is D) $1,770,000

Betty Dies on February 20, 2013