Question 4 At the time of her death on September 4, Alicia w…
Question 4 At the time of her death on September 4, Alicia was unmarried and held the assets described below. For each asset: (a) Indicate whether it should be included in her probate estate (type ‘Yes’ or ‘No’) (b) Indicate whether it should be included in her gross estate (type ‘Yes’ or ‘No’) (c) Indicate the value that should be included in her gross estate. If your answer to part (b) is ‘No,’ please put a zero (0) for part (c). Stock in Drab Corporation with a fair market value of $1,100,000 on September 4. The stock was originally purchased for $450,000 12 years ago. Is the asset included in Alicia’s probate estate? [1a] Is the asset included in Alicia’s gross estate? [1b] What value should be included in her gross estate? [1c] A cash dividend of $9,000 from Drab Corporation (above) was paid on September 15. The Drab dividend was declared on August 19 and was payable to shareholders of record on September 3. Is the asset included in Alicia’s probate estate? [2a] Is the asset included in Alicia’s gross estate? [2b] What value should be included in her gross estate? [2c] A Roth IRA with a value of $300,000. The IRA named Kent (her son) as the beneficiary. Is the asset included in Alicia’s probate estate? [3a] Is the asset included in Alicia’s gross estate? [3b] What value should be included in her gross estate? [3c] A life estate in which Alicia was the life tenant (fair market value of $2 million on September 4), created by her late husband Bert. Kent (her son) is the remainderman on the trust. The QTIP election was made at Bert’s death, when the trust was valued at $1.3 million. Is the asset included in Alicia’s probate estate? [4a] Is the asset included in Alicia’s gross estate? [4b] What value should be included in her gross estate? [4c] A revocable trust, created by Alicia 7 years ago, which holds a rental apartment building that had a fair market value of $750,000 at the time it was transferred into the trust. The trust document gave instructions to distribute the income of the trust to Alicia’s brother Dennis for his life, with the remainder passing to Kent (her son) upon Dennis’s death. At the time of Alicia’s death on September 4, the fair market value of the building was $1,200,000. Is the asset included in Alicia’s probate estate? [5a] Is the asset included in Alicia’s gross estate? [5b] What value should be included in her gross estate? [5c] A vacation home, purchased several years ago together with her brother Dennis. The house is titled as ‘Alicia and Dennis in Joint Tenancy.’ At the time of purchase, Alicia paid $455,000 and her brother paid $195,000 of the $650,000 purchase price. At the time of Alicia’s death on September 4, the fair market value of the home was $900,000. Alicia’s will leaves her portion of the home to Kent (her son). Is the asset included in Alicia’s probate estate? [6a] Is the asset included in Alicia’s gross estate? [6b] What value should be included in her gross estate? [6c] A life insurance policy, owned by Alicia on her own life. The policy named Kent (her son) and Dennis (her brother) as equal beneficiaries. The $1,000,000 policy paid out $500,000 to Kent and $500,000 to Dennis after her death. Is the asset included in Alicia’s probate estate? [7a] Is the asset included in Alicia’s gross estate? [7b] What value should be included in her gross estate? [7c]
Read DetailsIn your own words, what was the most impactful, interesting,…
In your own words, what was the most impactful, interesting, or memorable thing you learned in this Historical Geology course?Explain why it stood out to you and how it might shape the way you think about Earth’s history, geology, or the world around you.
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