Early in 2015, Mythos was diagnosed with a very fast-acting terminal illness. At

Question

Early in 2015, Mythos was diagnosed with a very fast-acting terminal illness. At the time of his diagnosis, his gross estate was valued at $10,430,000. Wanting to do some deathbed tax planning, he made gifts that totaled $8,570,000 (taxable gifts, reduced by 10 annual exclusions, was $8,430,000), resulting in a gift tax liability of $1,200,000. This large deathbed gift left Mythos with an estate valued at $1,860,000 at his death. What is Mythos' gross estate? A. $10,430,000 B. $1,860,000 C. $0 D. $3,060,000 E. None of the other answers is correct

Explanation / Answer

The correct answer should be: A. $ 10,430,000

The gross estate is dollar value of assets that Mythos has interest in, and includes the value of gifts made during his lifetime, but before debt and taxes are deducted.

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