Tracey is unmarried and owns $7 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

When Tracey dies and leaves all of her property to a qualified charity, her gross estate will still be $7 million, but her taxable estate will be zero since charitable contributions are deductible in full for estate tax purposes. Therefore, Tracey's estate will not owe any estate tax. However, her estate tax basis will be the fair market value of the property at the time of her death, which in this case is $7 million.

Tracey Is Unmarried and Owns $7 Million in Stock and Bonds