REFERENCE: Ref.19_02
The provisions of a will currently undergoing probate are: "Two thousand shares of Dorn stock to my son;$30,000 in cash from my savings account to my brother;$50,000 in cash to my daughter;and any remaining property divided equally between my son and daughter."
-Assume that Bob Smith dies on May 25,2008.Mr.Smith's assets include the following: ABC Stock costing $30,000 but valued at $40,000;a house costing $280,000 but valued at $620,000;life insurance in the amount of $600,000;and cash from various sources totaling $50,700.Three credit cards in Mr.Smith's name had balances totaling $8,530 on the date of death.The estate paid funeral and final medical expenses in the amount of $50,492.There were no charitable gifts designated by the will,and Mr.Smith was single at the time of his death.What is the amount of the taxable estate?

Question

Quizplus · Accepted Answer

The taxable estate is calculated by adding the value of all assets and subtracting liabilities and expenses. The total assets include the ABC stock ($40,000), the house ($620,000), life insurance ($600,000), and cash ($50,700), totaling $1,310,700. Subtract the credit card debt ($8,530) and funeral/medical expenses ($50,492) from this total to get the taxable estate of $1,251,678.

REFERENCE: Ref.19_02 The Provisions of a Will Currently Undergoing Probate Are: "Two