Prior to her death in 2022, Elfrieda made lifetime taxable gifts of $34,000. At her death, she was survived by her husband and daughter and owned the following property interests. Sole ownership: Life insurance on her husband's life with a death benefit of $500,000 and a replacement cost of $120,000, with her children as the beneficiaries A portfolio of stocks, bonds, and CDs valued at $8,000,000 Personal residence with a fair market value of $500,000 Joint ownership: With her husband: household furnishings, personal property, bank accounts, and automobiles worth a total of $800,000 With her daughter: a vacation condo valued at $400,000 for which her executor has records showing a 20% contribution by her daughter Her will bequeaths the personal residence outright to her husband with the rest and remainder of her estate to her daughter. She had debts of $6,000 and administrative costs of $24,000. Which one of the following amounts, if any, most closely approximates Elfrieda's estate tax liability? Use the Unified Federal Estate and Gift Tax Rates table

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter27: The Federal Gift And Estate Taxes
Section: Chapter Questions
Problem 28CE
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Prior to her death in 2022, Elfrieda made lifetime taxable gifts of $34,000. At her death, she was survived by her husband and daughter and owned the following property interests.

Sole ownership:

  • Life insurance on her husband's life with a death benefit of $500,000 and a replacement cost of $120,000, with her children as the beneficiaries
  • A portfolio of stocks, bonds, and CDs valued at $8,000,000
  • Personal residence with a fair market value of $500,000

Joint ownership:

  • With her husband: household furnishings, personal property, bank accounts, and automobiles worth a total of $800,000
  • With her daughter: a vacation condo valued at $400,000 for which her executor has records showing a 20% contribution by her daughter

Her will bequeaths the personal residence outright to her husband with the rest and remainder of her estate to her daughter. She had debts of $6,000 and administrative costs of $24,000.

Which one of the following amounts, if any, most closely approximates Elfrieda's estate tax liability? Use the Unified Federal Estate and Gift Tax Rates table.

Expert Solution
Step 1 Tax Liability

Elfrieda's estate tax liability is approx $ 30000 (24000+6000).

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