In: Accounting
Anne Smith had a $5,500,000 net worth at the time of her death in December 2018. In addition, she had a $250,000 whole life policy with a $40,000 of accumulated cash value; her niece was designated as the beneficiary. She also had a $150,000 pension plan death benefit. Calculations: 1. What was the value of Anne’s gross estate? 2. How much of her estate is taxable? 3. How much estate tax will need to be paid? 4. How much of her estate must pass through probate?