Using the same asset set, what is the value of his gross estate for estate tax purposes?

Using the same asset set, what is the value of his gross estate for estate tax purposes?

• A. $108,000
• B. $115,000
• C. $223,000
• D. $315,000

Answer: (C)

Gross estate for estate tax purposes is the total value of every asset the decedent owned or controlled at death that can be included in the tax base. This means adding up the fair market value of all property in which the decedent had ownership or incidents of ownership, including assets in his own name, life insurance policies he owned or controlled, his share of jointly held assets, and assets held in revocable trusts or otherwise retained with control. Retirement accounts are included if the decedent retained ownership. Deductions come later when calculating the taxable estate, not the gross estate. With the given asset set, all includable items add up to 223,000, which is why that value is used for the gross estate.

Gross estate for estate tax purposes is the total value of every asset the decedent owned or controlled at death that can be included in the tax base. This means adding up the fair market value of all property in which the decedent had ownership or incidents of ownership, including assets in his own name, life insurance policies he owned or controlled, his share of jointly held assets, and assets held in revocable trusts or otherwise retained with control. Retirement accounts are included if the decedent retained ownership. Deductions come later when calculating the taxable estate, not the gross estate. With the given asset set, all includable items add up to 223,000, which is why that value is used for the gross estate.