Harold and Harriet’s Estate Tax Problem
11/9/17
Hi Harold and Harriet,
Thanks for bringing in these documents to detail your current assets. This is very helpful in
assessing any potential estate tax issues and how we may address them. I have detailed your
current assets below, please check for accuracy:
1. Home with a fair market value (FMV) of $2,500,000.
2. Car 1, FMV = $50,000.
3. Car 2, FMV = $60,000.
4. Diamond Ring, FMV = $50,000
5. Boat, FMV = $100,000
6. Life insurance #1, Owner is Harold, Insured is Harriet, Death Benefit = $1,000,000
7. Life insurance #2, Owner is Harriet, Insured is Harold, Death Benefit = $2,000,000
8. IRA, Owner is Harold, Balance = $2,000,000
9. IRA, Owner is Harriet, Balance = $2,500,000
10. Anticipated inheritance from Harriet’s mom who passed away earlier this year (waiting for
distribution) = $3,000,000
Based on the information you’ve provided, your combined total gross estate would be valued
at $13,260,000. I have detailed the gross estate by ownership in the table below.
