Karen Died on May 5 of the Current Year

question 55

Essay

Karen died on May 5 of the current year. Her executor elects date-of-death valuation. Karen's gross estate possibly includes the following items:
• Joint checking account (with her husband), which has a balance of $10,000. Her husband did not contribute to the account.
• Joint savings account (with her daughter), which has a balance of $50,000. Her daughter did not contribute to the account.
• Life insurance policy on the life of Karen, having a face value of $400,000. The cost of a comparable policy immediately before Karen's death is $150,000. Karen's estate is the beneficiary.
• Life insurance policy on the life of Karen's daughter, having a face value of $100,000 with an interpolated terminal reserve immediately before Karen's death of $30,000.
Unexpired premiums are $5,000. Karen is the beneficiary. How much, if any, of these items are included in Karen's estate?

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Definitions:

Unipolar Depression

A major depressive disorder characterized by a persistent feeling of sadness or lack of interest in external stimuli, affecting a person's thoughts, behavior, and feeling of well-being.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a comprehensive classification of psychiatric disorders used by healthcare professionals.

Diagnose

The process of identifying a disease or condition by its signs, symptoms, and through the use of diagnostic tests.

Severe Depression

A more intense form of depression characterized by profound sadness, hopelessness, loss of interest in activities, and potential for suicidal thoughts or behaviors.