Jeffery Died in 2013 Leaving a $6,000,000 Gross Estate

question 54

Essay

Jeffery died in 2013 leaving a $6,000,000 gross estate.Six months after his death,the gross assets are valued at $6,100,000.In years prior to 2013 (but after 1976),Jeffery had made taxable gifts of $300,000.Of the $6,000,000 gross estate,one-half of the estate was transferred to his wife,administrative and funeral expenses were $100,000.Jeffery had debts of $200,000,and the remainder of the estate was transferred to his children.
a.What is the amount of Jeffery's taxable estate?
b.What is the tax base for computing Jeffery's estate?
c.What is the amount of estate tax owed if the unified credit is $2,045,800?
d.Alternatively,if six months after his death,the gross assets in Jeffery's estate declined in value to $2,000,000,can the administrator of Jeffery's estate elect the alternate valuation date?

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