Beth died on May 3, 2017. Her executor elected date-of-death valuation. Beths gross estate included, among other

Question:

Beth died on May 3, 2017. Her executor elected date-of-death valuation. Beth’s gross estate included, among other properties, the items listed below. What is the estate tax value of each item?

a. 4,000 shares of Highline Corporation stock, traded on a stock exchange on May 3, 2017 at a high of 30, a low of 25, and a close of 26.

b. Life insurance policy on the life of Beth having a face value of $600,000. The cost of a comparable policy immediately before Beth’s death was $187,430.

c. Life insurance policy on the life of Beth’s son having a face value of $100,000. The interpolated terminal reserve immediately before Beth’s death was $14,000. Unexpired premiums were $920.

d. Beach cottage appraised at a FMV of $175,000 and valued for property tax purposes at $152,000.

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... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...