Tony died earlier this year and the forensic accountant found the following assets and liabilities.
You have been asked to determine the value of the taxable estate.
Town house acquired with community funds in Tony’s name only owned in JTROS with daughter with a FMV of $860,000. Daughter was added to title later.
Condo in Arizona owned as community property with a FMV of $560,000
Residence in Colorado FMV $820,000 Tony acquired before the marriage.
Bank account opened funded during the marriage that has a POD for wife $30,000.
Life insurance acquired during the marriage with premiums paid from community funds on Tony’s life gifted to wife last year w/face value $1,000,000.
Antique automobile Tony inherited from his father he gave to his son four years ago but insurance paid by Tony and Tony drove it half the time $62,000
Life insurance policy acquired during the marriage with premiums paid from community funds on wife’s life with face value of $90,000 and FMV of $6,000.
Gift to son of stocks acquired prior to marriage valued at $56,000 in 2005 and is in a revocable trust which has FMV of $42,000 at death?
Trustee for his brother’s trust with his nephews being beneficiaries $80,000
Rolex watch Tony received as a 50th birthday gift from his wife. Tony gave it to son two years ago wherein son gets watch at Tony’s death. Future interest value at gift was $12,000 and the FMV at death is $14,000
Mortgage on condo in Arizona $120,000
Mortgage on residence $600,000
Funeral and Administrative expenses $82,000
Bequest to Red Cross $120,000
Bequest to spouse $30,000
What are the gross estate, adjusted gross estate and taxable estate values? Please show work