Jack, age 75, died on December 1, 2012. Jack was single at time of his death. He is survived by his only son, Jim. Jack died intestate and Jim was appointed the administrator of his estate. At the time of his death Jack owned the following assets:
Cash savings account held jointly with his son $550,000 (all monies deposited into account belonged to Jack).
Series EE Bonds face value $600,000 DOD (Date of Death) value $950,000 Accrued Interest $90,000. The bonds were redeemed on December 15, 2012.
4 family building owned as tenant in common with his brother, Tom. Property was purchased 1/1/73 Cost $500,000 MV (Market Value) DOD $3,500,000.00, mortgage payable $300,000. Rent receivable from property at DOD $2,500 which was collected after his death.
Art Collection MV DOD $1,600,000
5,000 shares of ABC stock DOD high 31 low 28 closing price 30 (stock was purchased 2/1/1998 Cost $125,000).
10,000 shares of XYZ stock DOD high 35 low 33 closing price 34 (stock was purchased 5/1/1980 Cost $130,000).
Life estate in principal residence cost $400,000 MV DOD $1,000,000.
Life insurance policy held in ILIT $1,000,000.
Life insurance policy owned by his son $500,000.
Stock portfolio held in a revocable trust $1,700,000.
In June 2012 Jack gifted his 2 family rental property to his son and retained the right to receive the rental income for the rest of his life. The property was purchased for $250,000. On the date of gift and DOD, the property value was $500,000. No gift tax was paid.
Automobile $60,000
PROBLEM: Jack, age 75, died on December 1, 2012. Jack was single at time of his death. He is survived by his only son, Jim. Jack died intestate and Jim was appointed the administrator of his estate. At the time of his death Jack owned the following assets: Cash savings account held jointly with his son $550,000 (all monies deposited into account belonged to Jack). Series EE Bonds face value $600,000 DOD (Date of Death) value $950,000 Accrued Interest $90,000. The bonds were redeemed on December 15, 2012. 4 family building owned as tenant in common with his brother, Tom. Property was purchased 1/1/73 Cost $500,000 MV (Market Value) DOD $3,500,000.00, mortgage payable $300,000. Rent receivable from property at DOD $2,500 which was collected after his death. Art Collection MV DOD $1,600,000 5,000 shares of ABC stock DOD high 31 low 28 closing price 30 (stock was purchased 2/1/1998 Cost $125,000). 10,000 shares of XYZ stock DOD high 35 low 33 closing price 34 (stock was purchased 5/1/1980 Cost $130,000). Life estate in principal residence cost $400,000 MV DOD $1,000,000. Life insurance policy held in ILIT $1,000,000. Life insurance policy owned by his son $500,000. Stock portfolio held in a revocable trust $1,700,000. In June 2012 Jack gifted his 2 family rental property to his son and retained the right to receive the rental income for the rest of his life. The property was purchased for $250,000. On the date of gift and DOD, the property value was $500,000. No gift tax was paid. Automobile $60,000 Note Receivable $500,000. Accrued interest of $5,000 was received on Dec, 20 2012. The following expenses were incurred by his estate: Funeral Expenses $15,000 Executor commissions $50,000 Attorney fees $30,000 Accountant fees $12,500 Court fees $2,000 Storage fees $4,000 Appraisal fees $2,000 Charitable contributions To the following charities: Cancer Society $5,000 Leukemia Society $5,000 Make a…
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