Question

Kristin was named Executrix of her deceased father's estate, which was valued at $10 million. Kristin will be entitled to receive an Executrix's commission of $100,000 in accordance with local law customs. What are the implications of this situation?

Question 4 options:

	a. Kristin will be subject to income tax on this commission
	b. The estate will be entitled to take a deduction for this amount in computing the adjusted taxable estate.
	c. The probate court will deny Kristin's commission as a viable estate tax deduction.
	d. Answer options A & B
	e. None of the above answer options apply to this situation.

Answer 1

d. Answer options A & B

Executrix's commission of $100,000 would not be subject to any "death tax": federal or state; however, the commission is taxable income on the hands of Kristin . Its an Earned Income