Before his death in early 2014, Jerry made the following transfers. Determine ho

Question

Before his death in early 2014, Jerry made the following transfers. Determine how much of each is included in the gross estate:

1) Purchased an insurance policy in 2005 on his life for $250,000 with his son Terrell as the sole beneficiary of $1,000,000.

2) Gifted a piece of residential real estate in 2010 (basis: $40,000; FMV $120,000 at death) to his daughter Anastasia.

3) Established a bank account with his mother as joint tenants with rights of survivorship with assets of $30,000.

4) In 2000, purchased stock in BADEC, Inc. for $100,000, listing title as follows: “Jerry, payable on proof of death to my son Terrell.” The stock is valued at $250,000 upon Jerry’s death.

Explanation / Answer

1. Insurance policy upto $1000000 will be included in the estate

2. Residential real estate gifted to his daughter will not be included since he was not the owner of it currently.

3. Share in the bank account opened jointly with his mother will be included in his estate.

4. Stock of $250000 will be included in his estate.

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