Assume that Bob Smith dies on May 25, 2018.Mr.Smith's assets include the following: ABC Stock costing $30,000 but valued at $40,000; a house costing $280,000 but valued at $620,000; life insurance in the amount of $600,000; and cash from various sources totaling $50,700.Three credit cards in Mr.Smith's name had balances totaling $8,530 on the date of death.The estate paid funeral and final medical expenses in the amount of $50,492.There were no charitable gifts designated by the will, and Mr.Smith was single at the time of his death.What is the amount of the taxable estate?

Question

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The taxable estate is calculated by summing the value of all assets and then subtracting debts and expenses. The assets include the stock ($40,000), house ($620,000), life insurance ($600,000), and cash ($50,700), totaling $1,310,700. Subtract the credit card debt ($8,530) and funeral/medical expenses ($50,492) from this total, resulting in a taxable estate of $1,251,678.

Assume That Bob Smith Dies on May 25, 2018