Morgan, a widow, recently passed away. The value of her assets at the time of death was $10,109,000. The cost of her funeral was $7,955, while estate administrative costs totaled $49,049. As stipulated in her will, she left $950,378 to charities. Based on this information answer the following questions: a. Determine the value of Morgan's gross estate. b. Calculate the value of her taxable estate. c. What is her gift-adjusted taxable estate value?

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter28: Income Taxati On Of Trusts And Estates
Section: Chapter Questions
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Morgan, a widow, recently passed away. The value of her assets at the time of death was $10,109,000. The cost of her funeral was $7,955,
while estate administrative costs totaled $49,049. As stipulated in her willI, she left $950,378 to charities. Based on this information answer
the following questions:
a. Determine the value of Morgan's gross estate.
b. Calculate the value of her taxable estate.
c. What is her gift-adjusted taxable estate value?
d. Assuming she died in 2017, how much of her estate would be subject to taxation?
e. Calculate the estate tax liability.
Transcribed Image Text:Morgan, a widow, recently passed away. The value of her assets at the time of death was $10,109,000. The cost of her funeral was $7,955, while estate administrative costs totaled $49,049. As stipulated in her willI, she left $950,378 to charities. Based on this information answer the following questions: a. Determine the value of Morgan's gross estate. b. Calculate the value of her taxable estate. c. What is her gift-adjusted taxable estate value? d. Assuming she died in 2017, how much of her estate would be subject to taxation? e. Calculate the estate tax liability.
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