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:

Embezzlement

The dishonest act of taking funds or property for oneself that has been entrusted to care for, but is actually owned by another individual.

Monthly Payments

Regular payments made in a partitioned amount over a specified period, commonly associated with loans or leases.

Duress

Coercion or force exerted upon someone to compel them to act against their will or make a legal agreement under pressure.

Wrongful

Actions or behavior that are illegal, unjust, or not correct according to law or equity.