Assume that Holly Scott dies on July 12, 2021. Ms. Scott's assets include the following: Alpha Stock costing $40,000 but valued at $50,000; a house costing $320,000 but valued at $680,000; life insurance in the amount of $650,000; and cash from various sources totaling $62,600. Three credit cards in Ms. Scott's name had balances totaling $10,620 on the date of death. The estate paid funeral and final medical expenses in the amount of $60,386. There were no charitable gifts designated by the will, and Ms. Scott was single at the time of her 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. Assets: $50,000 (Alpha Stock) + $680,000 (house) + $650,000 (life insurance) + $62,600 (cash) = $1,442,600. Liabilities and expenses: $10,620 (credit card debt) + $60,386 (funeral and medical expenses) = $71,006. Taxable estate: $1,442,600 - $71,006 = $1,371,594.

Assume That Holly Scott Dies on July 12, 2021