Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following scenario to answer questions 10 through 13. Scully died on January 1, 2019 after a rogue hot air balloon hit his car.

image text in transcribed
image text in transcribed
Use the following scenario to answer questions 10 through 13. Scully died on January 1, 2019 after a rogue hot air balloon hit his car. The property that he owned at the time of his death included the following: FMV on FMV on FMV on FMV on FMV on Property Basis 1/1/2019 4/1/2019 7/1/2019 10/1/2019 1/1/2020 House $200,000 $350,000 $354,393 $358,842 $363,346 $367,907 Boat $40,000 $38,000 $37,527 $37,060 $36,599 $36,143 IRA $100,000 $300,000 $309,000 $318,270 $311,905 $305,667 Annuity $100,000 $300,000 $275,840 $251,193 $226,050 $200,401 Note Receivable $40,000 $200,000 $190,918 $181,744 $172,479 $ 163,121 Personal Property $100,000 $30,000 $29,627 $29,258 $28,894 $28,534 Car $47,500 $25,000 $24,689 $24,381 $24,078 $23,778 Rental Property $230,000 $400,000 $411,101 $422,510 $434,236 $446,288 Investment Account $1,250,000 $1,850,000 $1,150,555 $1,128,222 $1,145,865 $1,543,468 $2,107,500 $3,493,000 $2,783,650 $2,751,480 $2,743,452 $3,115,307 Total All property listed above was owned in sole ownership by Scully. The annuity is a joint and survivor annuity and will continue to pay his wife Mindy for her lifetime. Scully's will leaves all probate assets to his son and daughter in equal shares. Scully also owned a life insurance policy on his life. His basis in the policy was $95,000 and the death benefit was $1,000,000. The beneficiary of the insurance policy was Scully's daughter, Daphne. Scully's investment account had a transfer on death designation to Daphne. The family sued the balloon operator and received $1,000,000 for wrongful death payable to Mindy and $250,000 for Scully's pain and suffering payable to Scully's estate. Scully made substantial gifts during his life. He paid gift tax of $98,000 in 2006, $97,200 2014, and $285,250 on April 15, 2016. Scully's funeral cost $15,000. The car was sold 4/1/19 for its fair market value on that date in order to pay for Scully's $38,000 hand-carved marble headstone. Scully had $325,000 of medical expenses from the accident, but all expenses were covered by his medical insurance. The note receivable was being paid monthly. 10. What is the value of Scully's gross estate assuming the date of death valuation is selected? 11. What is the value of Scully's gross estate assuming the alternate valuation date is selected? 12. Determine whether each of the following items is included in Scully's probate estate? Explain. Annuity Note Receivable Gift Tax Paid in 2014 Gift Tax Paid in 2016 Investment Account 13. What is the value of Scully's probate estate

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

=+ How does functionalism contrast with structuralism?

Answered: 1 week ago

Question

2. Develop a persuasive topic and thesis

Answered: 1 week ago

Question

1. Define the goals of persuasive speaking

Answered: 1 week ago