Reference no: EM133036324
Question - Hugo died in 2011. At the time of his death, the applicable exclusion amount was $5,000,000. He had the following assets:
Checking account (1) $75,000
Savings Account (1) $950,000
House (1) (6) $1,200,000
401(k) plan (2) $7,200,000
Life Insurance Proceeds (3) $ 500,000
Rental Property (4) $ 600,000
Stock Portfolio (5) $4,200,000
Personal Assets $350,000
(1) Owned by Hugo directly
(2) Owned by Hugo through his employer
(3) Term policy; set up through his employer
(4) Owned as tenants in common with his brother; Hugo owned 65%
(5) Held in trust; his daughter receives all of the income from the trust until she turns 30; at such time she receives the portfolio outright.
(6) There is also a home-equity line of credit, using the house as collateral, with a balance of $80,000. This was paid off by the estate.
In addition, Hugo had the following additional information:
Funeral Expenses $25,000
Administrative expenses $175,000
Charitable bequests $100,000
Lifetime taxable gifts $500,000
State death taxes paid $300,000
Required - How much does his estate owe in estate taxes?
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