1. David Collins died during the current year. The personal representative of David's estate reviewed the following assets: Stocks in David's name only: 2,000,000 Investment property in a trust that David has the right to revoke: 1,500,000 Primary home owned jointly with his wife (wife did not contribute to the purchase): 1,000,000 Insurance policy owned / insuring David with the proceeds payable to his daughter: 800,000 Vacation home owned jointly with his son (son did not contribute to the purchase): 500,000 Cash placed in an irrevocable trust by David 8 years ago with David's friend as trustee: 600,000 What is the value of David's gross estate for estate tax purposes? a. $3,500,000 b. $4,250,000 c. $5,300,000 d. $6,400,000
1. David Collins died during the current year. The personal representative of David's estate reviewed the following assets: Stocks in David's name only: 2,000,000 Investment property in a trust that David has the right to revoke: 1,500,000 Primary home owned jointly with his wife (wife did not contribute to the purchase): 1,000,000 Insurance policy owned / insuring David with the proceeds payable to his daughter: 800,000 Vacation home owned jointly with his son (son did not contribute to the purchase): 500,000 Cash placed in an irrevocable trust by David 8 years ago with David's friend as trustee: 600,000 What is the value of David's gross estate for estate tax purposes? a. $3,500,000 b. $4,250,000 c. $5,300,000 d. $6,400,000
Chapter27: The Federal Gift And Estate Taxes
Section: Chapter Questions
Problem 8BCRQ
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![1. David Collins died during the current year. The personal representative of David's estate reviewed the
following assets:
Stocks in David's name only:
2,000,000
Investment property in a trust that David has the right to revoke:
1,500,000
Primary home owned jointly with his wife (wife did not contribute to the purchase):
1,000,000
Insurance policy owned / insuring David with the proceeds payable to his daughter:
800,000
Vacation home owned jointly with his son (son did not contribute to the purchase):
500,000
Cash placed in an irrevocable trust by David 8 years ago with David's friend as trustee:
600,000
What is the value of David's gross estate for estate tax purposes?
$3,500,000
b. $4,250,000
а.
c. $5,300,000
d. $6,400,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdf3e887a-379f-42cb-8318-2ff71d86aeb6%2F1b93492c-5e25-4122-b788-1d479a781aa4%2Fs98lg0k_processed.png&w=3840&q=75)
Transcribed Image Text:1. David Collins died during the current year. The personal representative of David's estate reviewed the
following assets:
Stocks in David's name only:
2,000,000
Investment property in a trust that David has the right to revoke:
1,500,000
Primary home owned jointly with his wife (wife did not contribute to the purchase):
1,000,000
Insurance policy owned / insuring David with the proceeds payable to his daughter:
800,000
Vacation home owned jointly with his son (son did not contribute to the purchase):
500,000
Cash placed in an irrevocable trust by David 8 years ago with David's friend as trustee:
600,000
What is the value of David's gross estate for estate tax purposes?
$3,500,000
b. $4,250,000
а.
c. $5,300,000
d. $6,400,000
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