Vivien Harmon and Ben Harmon are a married couple residing in California. Vivien and Ben have one child, Violet Harmon (16). Sadly, in 2016, Vivien dies after giving birth to their youngest child, Ghostie Harmon. At the time of Vivien’s death, the Harmons own their home (titled in their names as “community property”) with a fair market value of $4,850,000, and a current mortgage of $425,000. The Harmons purchased the home 2 years earlier for $3,300,000. The Harmons also have a lake home in Big Bear titled as “joint tenants” valued at $2,300,000 (no mortgage), which they purchased 10 years ago for $2,500,000. There are two bank accounts equaling $880,000, titled in both of their names as “joint tenants.” There is a brokerage account equaling $1,120,000, which was Vivien’s inheritance from her father. There are two life insurance policies on Vivien’s life: one with a death benefit of $2,200,000 (payable to Ben); and another with a death benefit of $250,000 (payable to Vivien’s mother, Constance). There is one life insurance policy on Ben’s life with a death benefit of $3,000,000 (payable to Vivien). Finally, Vivien has stock held in her name in American Horror Tale, Inc., which is valued at $1,100,000. Vivien had a Will stating that everything goes to Ben. Unless otherwise stated, assume all assets were acquired during marriage through Vivien’s and Ben’s employment during marriage. Calculate the probatable estate, total statutory probate fees, and value of gross estate and gross estate tax.
Part II: Ben dies 10 months after Vivien (he accidently hangs himself while changing a light bulb on a chandelier –or was it ghosts that pushed him?). Ben had a Will stating that everything goes to Vivien (which he never got around to updating). Fortunately, Ben changed the beneficiary of his life insurance policy to the children. Assume all assets are the same value as they were at Vivien’s death. Do not take into account any administration expenses paid as a result of Vivien’s death. Calculate the probatable estate, total statutory probate fees, and Ben's gross estate and gross estate tax.