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4. Moose died recently, leaving his entire $6 million gross estate to his wife, Trixie, who is named executor. Assume that the only estate expense
4. Moose died recently, leaving his entire $6 million gross estate to his wife, Trixie, who is named executor. Assume that the only estate expense is the executor's commission of $100,000. Marginal tax rates for the taxpaying entities are Trixie's Form 1040, 33%; the final Form 1040, 15%; the Form 1041, 28%; the Form 706, 35%. a. Should Trixie accept or waive the commission? Why? b. Where, if at all, should the estate deduct the commission? Why? c. Would your answers to parts "a" and "b" change if Moose's net estate was $200,000? d. Would your answers to parts "a" and "b" probably change if Trixie, the executor, was Moose's cousin to whom Moose left nothing by will or otherwise? Assume a $6 million taxable estate that goes to Moose's adult children
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