Mr. Arnold Schwartz died on January 23, 20X5. He owned the following items on the date of his death:
He also had the following liabilities:
His funeral and administrative expenses were $10,000. He also had a life insurance policy with no cash value for $150,000 payable to his son.
Arnold's will specified the following:
(1)
Mercy Hospice was to receive $15,000 in cash.
(2)
His son was to receive the rental property and one-fourth of the stocks.
(3)
His wife was to receive the remainder of the assets.
Required:
Assuming Arnold made $100,000 in taxable gifts since 1976, compute his tax base for estate tax purposes.

Question

Mr. Arnold Schwartz died on January 23, 20X5. He owned the following items on the date of his death:
  He also had the following liabilities:
  His funeral and administrative expenses were $10,000. He also had a life insurance policy with no cash value for $150,000 payable to his son.
Arnold's will specified the following:
(1)
Mercy Hospice was to receive $15,000 in cash.
(2)
His son was to receive the rental property and one-fourth of the stocks.
(3)
His wife was to receive the remainder of the assets.
Required:
Assuming Arnold made $100,000 in taxable gifts since 1976, compute his tax base for estate tax purposes.

Quizplus · Accepted Answer

The Answer of Mr. Arnold Schwartz died on January 23, 20X5. He owned the following items on the date of his death:
  He also had the following liabilities:
  His funeral and administrative expenses were $10,000. He also had a life insurance policy with no cash value for $150,000 payable to his son.
Arnold's will specified the following:
(1)
Mercy Hospice was to receive $15,000 in cash.
(2)
His son was to receive the rental property and one-fourth of the stocks.
(3)
His wife was to receive the remainder of the assets.
Required:
Assuming Arnold made $100,000 in taxable gifts since 1976, compute his tax base for estate tax purposes.

Mr Arnold Schwartz Died on January 23, 20X5