Tracey is unmarried and owns $17 million in stock and bonds. What is the result if Tracey dies this year and leaves all of her property to a qualified charity?

Question

Quizplus · Accepted Answer

If Tracey leaves all her property to a qualified charity, the value of her estate will be reduced by the amount of the gift to the charity. Thus, her taxable estate will be zero, but her gross estate and estate tax basis may not necessarily be zero. However, since the question only asks about the taxable estate, the correct answer is C.

Tracey Is Unmarried and Owns $17 Million in Stock and Bonds