L and M are in their 70s and are concerned about their estate taxes. They have combined net worth of $6,100,000 in addition to which L owns $500,000 whole life insurance policy for which M is beneficiary. They are thinking to $100,000 to their son. The family has no will for their estate. Characters in the case: L and M. Adequate information: The net worth of the family is $6,100,000. Life insurance policy is worth of $500,000. To determine: Taxable value of estate after the death of L. Given information: Combined estate value of L and M is $6,100,000. Amount to be given to her son is $100,000. Transfer $1,000,000 to two irrevocable trusts established for her grandchildren. Amount for charity is $500,000.

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Chapter 16, Problem 9DC1

Summary Introduction

Case summary:

L and M are in their 70s and are concerned about their estate taxes. They have combined net worth of $6,100,000 in addition to which L owns $500,000 whole life insurance policy for which M is beneficiary. They are thinking to $100,000 to their son. The family has no will for their estate.

Characters in the case:

L and M.

Adequate information:

The net worth of the family is $6,100,000.

Life insurance policy is worth of $500,000.

To determine:

Taxable value of estate after the death of L.

Given information:

Combined estate value of L and M is $6,100,000.

Amount to be given to her son is $100,000.

Transfer $1,000,000 to two irrevocable trusts established for her grandchildren.

Amount for charity is $500,000.

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