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:

Stealing and Lying

Behaviors often associated with conduct disorders, involving the unauthorized taking of property and deception.

Intermittent Explosive Disorder

A behavioral disorder characterized by explosive outbursts of anger and violence that are disproportionate to the situation at hand.

Aggressive Reactions

Behavioral responses characterized by hostility or violence towards others, often triggered by frustration or threat.

DSM-5 Criteria

The diagnostic criteria outlined in the fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, used by healthcare professionals to diagnose mental disorders.