What is the value of donny marital deduction

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Reference no: EM133334556

Assignment: Donny died on January 1, 2016 after a drunk driver hit his car. The property that he owned at the time of his death included the following:

Property Basis FMV on 1/1/16 FMV on 4/1/16 FMV on 7/1/16 FMV on 10/1/16 FMV on 1/1/17

House $200,000 $350,000 $354,393 $358,842 $363,346 $367,907

Boat $40,000 $38,000 $37,527 $37,060 $36,599 $36,143

Annuity $100,000 $300,000 $275,840 $251,193 $226,050 $200,401

Note Receivable $40,000 $200,000 $190,918 $181,744 $172,479 $163,121

Persona Property $100,000 $30,000 $29,627 $29,258 $28,894 $28,534

Car $47,500 $25,000 $24,689 $24,381 $24,078 $23,778

Rental Property $230,000 $400,000 $411,101 $422,510 $434,236 $446,288

Total $757,500 $1,343,000 $1,324,095 $1,304,988 $1,285,682 $1,266,172

All property listed above was owned in sole ownership by Donny. The annuity is a joint and survivor annuity and will continue to pay his wife Jeanette for her lifetime. Donny's will leaves all probate assets to his son and daughter in equal shares. Donny also owned a life insurance policy on his life. His basis in the policy was $89,000 and the death benefit was $1,000,000. The beneficiary of the insurance policy was Donny's daughter, Cheryl. The family sued the drunk driver and received

$500,000 for wrongful death payable to Jeanette and $200,000 for Donny's pain and suffering payable to Donny's estate. Donny made substantial gifts during his life. He paid gift tax of $98,000 in 2006 and $67,200 on April 15, 2014. Donny's funeral cost $15,000. The car was sold 4/1/16 for its fair market value on that date in order to pay for Donny's $16,000 hand-carved marble headstone. Donny had $250,000 of medical expenses from the accident, but all expenses were covered by his medical insurance. The note receivable was being paid monthly.

Questions:

1. What is the value of Donny's gross estate assuming the date of death valuation is selected?

2. What is the value of Donny's gross estate assuming the alternate valuation date is selected?

3. What is the value of Donny's marital deduction?

Reference no: EM133334556

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