Chloe's gross estate consists of the following property valued at the date of death:
Chloe's real estate is encumbered by a mortgage of $450,000, and Chloe's executor paid her funeral costs of $6,000 and charged fees for $24,000. Which of the following is a True statement?

Question

Chloe's gross estate consists of the following property valued at the date of death: 
Chloe's real estate is encumbered by a mortgage of $450,000, and Chloe's executor paid her funeral costs of $6,000 and charged fees for $24,000. Which of the following is a True statement?

Quizplus · Accepted Answer

Chloe's gross estate ($12.5 million) is reduced by debts, funeral expenses, and executor's fees (if elected by the executor). Hence the adjusted gross estate is $12,020,000 ($12.5 million less $480,000).

Chloe's Gross Estate Consists of the Following Property Valued at the Date