D’s gross estate consists of the following assets, with different values as of the indicated dates: Asset Date of Death

D’s gross estate consists of the following assets, with different values as of the indicated dates: Asset Date of Death

Question:

D’s gross estate consists of the following assets, with different values as of the indicated dates:AssetDate of DeathSix Months After Date of DeathReal Estate$5,300,000$5,200,000Stocks$550,000$600,000Inventory$500,000$510,000Patent with 5 years to run at death$150,000$135,000Receivables$100,000$80,000Total$5,600,000$5,525,000The stocks were distributed to D’s sole beneficiary three months after D’s death when they were worth $560,000. Dividends of $2,000 on the stock were received by the estate after D’s death, but before the stock was distributed. Royalties on the patent of $20,000 were received by the estate in the first six months after D’s death. In addition, $20,000 of receivables had been collected in the first six months.         a. Can the personal representative-elect to value the estate under § 2032?         b. What would be the impact under § 2032 if (1) D died before the record date for the dividend, and (2) the estate collected an additional $20,000 of receivables during the first six months after D’s death?         c. How would the results differ if D died after the record date for the dividend?

Expert Answer:

Answer rating: 100% (QA)

a Can the personal representative elect to value the estate under 2032 Section 2032 of the Internal Revenue Code allows the executor or personal repre
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