What value is to be reported as the taxable estate for federal estate tax purposes?
Donna Stober's estate has the following assets (all figure approximate fair value):
Investments in stocks and bonds $1,552000
House 756,000
Cash 74,900
Investment land 60,800
Automobiles (three rare vehicles) 59,000
Other assets 108,000
The house, cash, and other assets are left to the decendent's spouse. The investment land is contributed to a charitable organization. The automobiles are to be given to the decendent's brother . The investments in stocks and bonds are to be put into a turst fund. The income generated by this trust will go to the decendent's spouse annually until all of the couple's children have reached the age of 25. At that time, the trust will be divided evenly among the children.
The following amounts are paid prior to distribution and settlement of the estate: funeral expenses of $20,400 and estate administration expenses $10,600.
What value is to be reported as the taxable estate for federal estate tax purposes?
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