Assume that Bob Smith dies on May 25, 2013. 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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ABC Stock at FV $40,000 + House at FV $620,000 + Life Insurance of $600,000 + Cash of 50,700 - Credit Card Liability of $8,530 - Funeral/Medical Expenses of $50,492 = $1,251,678 Estate Valuation

Assume That Bob Smith Dies on May 25, 2013