LOS At the time of her death on September 4, 2015, Alicia held the following assets. Bonds of Emerald Tool Corporation Stock in Drab Corporation Insurance policy (face amount of $400,000) Fair Market Value $ 900,000 1,100,000 on the life of her father, Mitch Traditional IRAs *Cash surrender value. 80,000* 300,000 Alicia was also the life tenant of a trust (fair market value of $2 million) created by her late husband Bert. (The executor of Bert\'s estate had made a QTIP election.) In October, Alicia\'s estate received an interest payment of $11,500 ($6,000 accrued before September 4, 2015) paid by Emerald and a cash dividend of $9,000 from Drab. The Drab dividend was declared on August 19 and was payable to date of re- cord shareholders on September 3, 2015. Although Mitch survives Alicia, she is the designated beneficiary of the policy. The IRAs are distributed to Alicia\'s children. What amount is included in Alicia\'s gross estate? Solution Alicia’s Gross Estate:- Bonds of Emrald Tool Corporation - 900,000 Interest on Emrald Tool Bonds – 11,500…………..(accrued interest is to be included ) Stock in Drab Corporation - 1,100,000 Cash Dividend – 9,000 Insurance Policy – 80,000 ……….( Cash surrender value) Traditional IRA – 300,000 Value of Trust – 2,000,000 Thus, Total asset – 4,400,500.