Exam 19: A: Accounting for Estates and Trusts

The terms of a will currently undergoing probate are: "A gift to my brother David of $25,000 cash; to my son James, $50,000 from my Harbor Savings Bank account; and to my daughter Lila, all of my remaining property." At the time of death, the balance in the savings account was $40,000, and there was additional cash (after payment of funeral expenses and all claims against the estate) of $70,000. -The decedent resided in a state that treats a demonstrative legacy shortfall as a general legacy.How much would James have received from the estate?

What is a remainderman of trust property?

The executor of Danny Mack's estate has listed the following properties at fair value: Cash $200,000, Life Insurance Receivable $500,000, Investment in Stocks and Bonds $50,000, Rental Property $100,000, and Personal Property $80,000. Additionally, the executor found $100,000 of various debts incurred before the decedent's death. The cost of Danny Mack's funeral was $20,000. -Prepare the journal entry to record ordinary repairs to the rental property of $5,000.

The executor of Danny Mack's estate has listed the following properties at fair value: Cash $200,000, Life Insurance Receivable $500,000, Investment in Stocks and Bonds $50,000, Rental Property $100,000, and Personal Property $80,000. Additionally, the executor found $100,000 of various debts incurred before the decedent's death. The cost of Danny Mack's funeral was $20,000. -Prepare the journal entry to record the distribution of $4,000 to Anna Lee, an income beneficiary.

After expenses of administering an estate, which claims would be next in a typical order of priority to establish which creditors will get paid? (1) Funeral expenses (2) Medical expenses of the last illness (3) Debts and taxes given preference under laws (4) Credit card debts.

In settling an estate, what is the meaning of the term devise?

When an estate does not have sufficient assets to satisfy all claims against it, what claim has the highest priority?

The executor of the Estate of Kate Tweed discovered the following assets (at fair value): The will of Kate Tweed had the following provisions: -$195,000 in cash went to Victor Vickery. -All shares of PepsiCo went to Duchess Doyle. -The residence went to Louis Tweed. -All other estate assets were to be liquidated with the resulting cash going to the Sacred Church of Liberty, Missouri. -Cash of $195,000 was conveyed to the appropriate beneficiary.Prepare the journal entry to record the transaction.

The executor of the Estate of Kate Tweed discovered the following assets (at fair value): The will of Kate Tweed had the following provisions: -$195,000 in cash went to Victor Vickery. -All shares of PepsiCo went to Duchess Doyle. -The residence went to Louis Tweed. -All other estate assets were to be liquidated with the resulting cash going to the Sacred Church of Liberty, Missouri. -Funeral expenses of $26,000 were paid. Prepare the journal entry to record the transaction.

When a person dies without leaving a valid will, how is the distribution of his or her property determined?

Which of the following is not normally viewed as an adjustment to the principal of an estate?

The executor of the Estate of Kate Tweed discovered the following assets (at fair value): The will of Kate Tweed had the following provisions: -$195,000 in cash went to Victor Vickery. -All shares of PepsiCo went to Duchess Doyle. -The residence went to Louis Tweed. -All other estate assets were to be liquidated with the resulting cash going to the Sacred Church of Liberty, Missouri. -Title to the residence was conveyed to Louis Tweed.Prepare the journal entry to record the transaction.

The executor of Danny Mack's estate has listed the following properties at fair value: Cash $200,000, Life Insurance Receivable $500,000, Investment in Stocks and Bonds $50,000, Rental Property $100,000, and Personal Property $80,000. Additionally, the executor found $100,000 of various debts incurred before the decedent's death. The cost of Danny Mack's funeral was $20,000. -Prepare the journal entry to record the sales of the stocks and bonds for $120,000

The executor of Danny Mack's estate has listed the following properties at fair value: Cash $200,000, Life Insurance Receivable $500,000, Investment in Stocks and Bonds $50,000, Rental Property $100,000, and Personal Property $80,000. Additionally, the executor found $100,000 of various debts incurred before the decedent's death. The cost of Danny Mack's funeral was $20,000. -Prepare the journal entry to record the collection of rental income of $10,000.$1,000 had been earned prior to the decedent's death.

An executor will normally carry out all the following tasks except:

What are the three goals of probate laws?

The executor of Danny Mack's estate has listed the following properties at fair value: Cash $200,000, Life Insurance Receivable $500,000, Investment in Stocks and Bonds $50,000, Rental Property $100,000, and Personal Property $80,000. Additionally, the executor found $100,000 of various debts incurred before the decedent's death. The cost of Danny Mack's funeral was $20,000. -Prepare the journal entry to record the payment of the estate's liabilities for debts incurred prior to the decedent's death.

Under what circumstance does an estate have an executor?

What is the amount of the personal exemption on an estate income tax return?

What is the difference between an executor and an administrator?