Gross Estate - Items Included and Excluded (LO. 6) At the time of her death on September 4, 2013, Alicia held the following assets:
Fair Market
Value Bonds of Emerald Tool Corporation $900,000
Stock in Drab Corporation 1,100,000
Insurance policy (face amount of $400,000) on the life of her father, Mitch 80,000*
Roth IRAs $300,000
*Cash surrender value.
Alicia was also the life tenant of a trust (fair market value of $2,000,000) created by her late husband Bert. (The executor of Bert's estate did not make a QTIP election.)
In October, Alicia's estate received an interest payment of $11,500 ($6,000 accrued before September 4, 2013) paid by Emerald and a cash dividend of $9,000 from Drab. The Drab dividend was declared on August 19 and was payable to date of record shareholders on September 5, 2013.
Although Mitch survives Alicia, she is the designated beneficiary of the policy. The IRAs are distributed to Alicia's children. Mitch is killed by a rock slide while mountain climbing in November 2013, and the insurer pays Alicia's estate $400,000.
On November 7, 2013, Alicia's estate receives from the IRS an $8,000 income tax refund on the taxes she paid for the preceding calendar year.