Determine how much of each is included in the gross estate


Problem

Scenario: Before his death in early 2014, Jerry made the following transfers. Determine how much of each is included in the gross estate:

Purchased an insurance policy in 2005 on his life for $250,000 with his son Terrell as the sole beneficiary of $1,000,000.

Gifted a piece of residential real estate in 2010 (basis: $40,000; FMV $120,000 at death) to his daughter Anastasia.

Established a bank account with his mother as joint tenants with rights of survivorship with assets of $30,000.

In 2000, purchased stock in BADEC, Inc. for $100,000, listing title as follows:

"Jerry, payable on proof of death to my son Terrell." The stock is valued at $250,000 upon Jerry's death.

The question is based on determining how much estate tax is due for each of the items.

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Accounting Basics: Determine how much of each is included in the gross estate
Reference No:- TGS02768630

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