Before her death in early 2015, Katie made the following transfers. In 2008, purchased stock in Green

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Before her death in early 2015, Katie made the following transfers.

  • In 2008, purchased stock in Green Corporation for $200,000 listing title as follows: "Katie, payable on proof of death to my son Travis." Travis survives Katie, and the stock is worth $300,000 when Katie dies.
  • In 2013, purchased an insurance policy on her life for $200,000 listing Paul, another of Katie's sons, as the designated beneficiary. The policy has a maturity value of $1 million and was immediately transferred to Paul as a gift.
  • In 2013, made a gift of land (basis of $300,000; fair market value of $1.3 million) to Adriana, Katie's only daughter. As a result of the transfer, Katie paid a gift tax of $150,000. The value of the land is still $1.3 million at Katie's death.
  • In 2013, established a savings account with Noah, her grandfather. Title to the account was listed as "Katie and Noah, joint tenants with right of survivorship." Of the $200,000 deposited in the account, Katie furnished $20,000 and Noah contributed the balance. At Katie's death, the balance was $206,000.

As to these transfers, how much is included in Katie's gross estate?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Related Book For  book-img-for-question

South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts

ISBN: 9781305399884

39th Edition

Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young

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