33. The provisions of a will currently undergoing probate are: “One thousand
shares of Wal-Mart stock to my son; $10,000 in cash from my savings account to
my brother; $5,000 in cash to my daughter; and any remaining property divided
equally between my son and daughter.” At the time of death, the estate included
1,000 shares of Wal-Mart stock and $6,000 cash in the savings account. What
would the brother have received from the settlement of the estate?
34. The estate of Bobbi Jones has the following provisions: total value of
estate assets $2,000,000, amount specified to convey to a spouse $1,000,000,
amount specified to convey to children $200,000, total debts 400,000,
administrative expenses $50,000, and funeral expenses of $30,000. What is the
value of the taxable estate?
35. The party to receive a distribution of principal from an estate is legally
called a(n):
36. Jim Bowie died on April 1, 2011. The estate has the following gross asset
valuation information:
The estate tax will be calculated using:
37. An executor will normally carry out all the following tasks
except
:
38. When there are not enough assets in the estate to satisfy all legacies in
the will, the distribution schedule goes through a process of:
39. For which type of trust is the income taxed in the grantor’s individual
income tax return?
40. Which of the following is
not
a trust used for estate planning?
41. For each of the following situations, select the best answer concerning
adjustments to principal and income of an estate. Assume that the will does not
specify whether the item is to be classified as principal or income.
(A.) Adjustment to the principal of the estate.
(B.) Adjustment to the income of the estate.
(C.) Allocated between the principal and income of the estate in some fair
manner.
(D.) Allocated between the principal and income of the estate determined by
existence at date of death.
___ 1. Homestead allowance
___ 2. Insurance expenses
___ 3. Executor’s fee
___ 4. Life insurance proceeds when estate is beneficiary
___ 5. Investment commissions
___ 6. Debts incurred prior to death
___ 7. Water and other utility expenses
___ 8. Liquidating dividends
___ 9. Dividend income
___ 10. Funeral expenses
___ 11. Extraordinary repairs on income-producing property
___ 12. Attorney fees
___ 13. Property taxes
___ 14. Gains and losses on the sale of securities
___ 15. Interest income
___ 16. Court costs
___ 17. Ordinary repairs on income-producing property
___ 18. Accounting fees
42. What is meant by
estate accounting
?
43. What is meant by “
an individual dies intestate
“?
44. In settling an estate, what is the meaning of the term
devise
?
A
45. What is the purpose of the
Uniform Probate Code
?
46. How may real property be treated in identifying estate property subject to
probate?
47. What choices does an executor of an estate have in determining the
values of assets included in the estate for tax purposes?
48. What is a
remainderman
of trust property?
49. What are the three goals of probate laws?
50. What is the difference between an
executor
and an
administrator
?
51. What are the four levels of claims in the
order of priority
of the Uniform
Probate Code?
52. In settling an estate, what is the meaning of the term
legacy
?
53. The estate of Kent Talbert reported the following information:
Required:
Prepare a schedule to show the amount of the
taxable estate
.
54. During the most recent year, an estate generated income of $26,000:
The interest income was conveyed immediately to the beneficiary stated in the
decedent’s will. Dividends of $1,560 were given to the decedent’s church.
Prepare a schedule to show the amount of
taxable income
.
55. During the most recent year, an estate generated income of $26,000:
56. The executor of the estate of Yelbert Toper recorded the following
information:
Assets discovered at death (at fair value):
Debts of $22,100 still remain to be paid. The shares of Dell stock were conveyed
to the appropriate beneficiary. Executor fees are allocated based on total
charges for principal and for income.
Required:
Prepare a
charge and discharge statement
for this estate.
57. The executor of the Estate of Kate Tweed discovered the following assets
(at fair value):
8. The executor of the Estate of Kate Tweed discovered the following assets
(at fair value):