At the time of Mateo's death, he was involved in the transactions described below: Mateo was a participant in his employer's contributory qualified pension plan. The plan balance of $2,000,000 is paid to Olivia, Mateo's daughter and beneficiary. The distribution consists of the following:
At the time of Mateo's death, he was involved in the transactions described below: Mateo was a participant in his employer's contributory qualified pension plan. The plan balance of $2,000,000 is paid to Olivia, Mateo's daughter and beneficiary. The distribution consists of the following:
Chapter27: The Federal Gift And Estate Taxes
Section: Chapter Questions
Problem 39P
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At the time of Mateo's death, he was involved in the transactions described below:
- Mateo was a participant in his employer's contributory qualified pension plan. The plan balance of $2,000,000 is paid to Olivia, Mateo's daughter and beneficiary. The distribution consists of the following:
Employer contributions $900,000 Mateo's after-tax contributions 600,000 Income earned and accumulated by the plan 500,000 - Mateo was covered by his employer's group term life insurance plan for employees. The $200,000 proceeds are paid to Olivia, as designated beneficiary.
a. What is the total amount (of the items above) that is included in Mateo's gross estate?
b. What is the total amount (of the items above) that is included in Mateo's gross estate if Olivia were Mateo's surviving spouse rather than his daughter?
The amount included would be _____ and a marital deduction of _____ would be allowed.Expert Solution
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT