Question

Benjamin Jacobs has been appointed executor of Della Braham’s estate. Mr. Jacobs recorded the following with respect to Ms. Braham’s estate:

Assets at date of death (recorded at fair value):

Cash $700,000

Life insurance receivable 200,000

Investments

Belko Holdings Common Stock 12,000

Lowe’s Inc. Common Stock 25,000

McDonald’s Corp Common Stock 30,000

  Petco Inc. Common Stock 31,000

Rental house 250,000

Cash outflows:

Funeral expenses $18,000

Executor fees 10,000

Repairs (ordinary) on the rental house 1,000

Debts 50,000

Distribution of income to Bill Braham, income beneficiary 2,000

Cash inflows:

Sale of Lowe’s stock $27,000

Rent income ($2,000 earned prior to death) 10,000

Dividend income ($3,000 earned prior to death) 15,000

Life insurance proceeds 200,000

Debts of $20,000 are still outstanding. The Belko shares were transferred to Belinda Braham, to whom they were designated. Ms. Della Braham left instructions that executor fees were to be paid out of the principal of the estate. Prepare an interim charge and discharge statement for this estate.

Answer 1

	Interim Charge and discharge statement for Della Braham's Estate
	PRINCIPAL
	I charge myself for assets of estate
	Cash	$ 7,00,000.00
	Life insurance receivable	$ 2,00,000.00
	Investments at Fair Market Value
	Belko Holdings Common Stock	$      12,000.00
	Lowe’s Inc. Common Stock	$      25,000.00
	McDonald’s Corp Common Stock	$      30,000.00
	Petco Inc. Common Stock	$      31,000.00
	Rental house	$ 2,50,000.00	$ 12,48,000.00
	I credit myself for :
	Funeral expenses	$      18,000.00
	Executor fees	$      10,000.00
	Repairs (ordinary) on the rental house	$        1,000.00	$        29,000.00
	Payments done for
	Debts	$      50,000.00	$        50,000.00
	Devise distributed to Belinda Braham
	Belko Holdings Common Stock	$      12,000.00	$        12,000.00
	Remaining of assets of estate
	Cash	$ 8,46,000.00
	Investments at Fair Market Value
	McDonald’s Corp Common Stock	$      30,000.00
	Petco Inc. Common Stock	$      31,000.00
	Rental house	$ 2,50,000.00	$ 11,57,000.00
	Interim discharge of Total Principal		$ 12,24,000.00
	INCOME
	I charge myself for estate income received
	Sale of Lowe’s Inc. Common Stock	$        2,000.00
	Rental Income	$      10,000.00
	Dividend Income	$      15,000.00	$        27,000.00
	I credit myself for estate income received
	Distribution of income to Bill Braham, income beneficiary	$        2,000.00	$          2,000.00
	Remaining of Income of estate
	Income Of Estate	$      25,000.00	$        25,000.00
	Interim discharge of Total Income		$        27,000.00
Income Earned prior to death but received later will be a part of Income as assets availabe at the time of deate includes cash which is shown seperately as Principal
therefore cash received after the death will not form part of those assets to keeps the accounts clear
Further its interim Statement and so debt of $ 20,000.00 will remain outstanding as of now and will be shown as notes
All the Pyments of Bills and Expenses are doen from the cash availabe as principal and also amount received of insurance proceeds and on sale of common stock is added to the Cash