What is the value of cedric's gross estate assuming the date of death valuation is selected?
Use the following scenario to answer questions 10 through 13. Cedric died on January 1, 2018 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 1/1/2018 $512,500 $32,500 $300,000 $325,000 $350,000 $60,000 $44,070 $645,000 4/1/2018 $520,250 $30,856 $309,000 $302,812 $340,918 $58,627 $42,748 $654,675 $1,250,000 $1,850,000 $1,150,555 $1,128,222 $1,145,865 $1,543,468 $2,646,450 $4,119,070 $3,410,441 $3,377,214 $3,371,163 $3,745,957 7/1/2018 $524,412 $30,547 $318,270 $287,671 $323,872 $58,258 $41,465 $664,495 10/1/2018 $528,607 $30,242 $311,905 $273,288 $307,678 $58,894 $40,221 $674,463 1/1/2019 $532,836 $29,940 $305,667 $259,623 $292,295 $58,534 $39,015 $684,579 House $275,000 $45,000 $125,000 $125,000 $125,000 $140,000 $73,450 $488,000 Boat IRA Annuity Note Receivable Personal Property Car Rental Property Investment Account Total All property listed above was owned in sole ownership by Cedric. The annuity is a joint and survivor annuity and will continue to pay his wife Mindy for her lifetime. Cedric's will leaves all probate assets to his son and daughter in equal shares. Cedric 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 Cedric's daughter, Daphne. Cedric'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 $500,000 for Cedric's pain and suffering payable to Cedric's estate. Cedric made substantial gifts during his life. He paid gift tax of $108,000 in 2006, $97,200 2014, and $185,250 on April 15, 2016. Cedric's funeral cost $15,000. The car was sold 4/1/18 for its fair market value on that date in order to pay for Cedric's $38,000 hand-carved marble headstone. Cedric had $350, 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 Cedric's gross estate assuming the date of death valuation is selected? 11. What is the value of Cedric's gross estate assuming the alternate valuation date is selected? 12. Determine whether each of the following items is included in Cedric's probate estate? Explain. ne c mer arady a naned gentpeiam Annuity wie pranc t eceine nsen at Later de "Pronmssg nete Note Receivable Gift Tax Paid in 2014 j,20o-no arT ears Tnt decedont dr Gift Tax Paid in 2016 155, 250- .7 ant payd ntledr ndiriaual anets-Tied tadpic ay- Investment Account Benegiesany designatas no co-Onnes 13. What is the value of Cedric's probate estate
