C:13-57 Bonnie died on June 1, 2018, survived by her husband, Abner, and two sons, Carl and Doug. Bonnies only lifetime taxable gift was made in October 2015 in the taxable amount of $6.25 million. She did not elect gift splitting. By the time of her death, the value of the gifted property (stock) had declined to $5.1 million. Bonnies executor discovered the items shown below. Amounts shown are the FMVs of the items as of June 1, 2018. Cash in checking account in her name $ 199,750 Cash in savings account in her name 430,000 Stock in names of Bonnie and Doug, joint tenants with right of survivorship. Bonnie provided all the consideration ($3,000) to purchase the stock. 25,000 Land in names of Bonnie and Abner, joint tenants with right of survivorship. Abner provided all the consideration to purchase the land. 360,000 Personal residence in only Bonnies name 450,000 Life insurance on Bonnies life. Bonnie was owner, and Bonnies estate was beneficiary (face value) 5,000,000 Trust created under the will of Bonnies mother (who died in 2000). Bonnie was entitled to all the trust income for life, and she could will the trust property to whomever she desired. She willed it to her sons in equal amounts. 9,000,000 Bonnies debts, as of her date of death, were $60,000. Her funeral and administration expenses were $9,000 and $71,000, respectively. Her estate paid state death taxes of $65,000. The executor elected to deduct the administration expenses on the estate tax return.

Bonnies will included the following: I leave my residence to my husband Abner. $250,000 of property is to be transferred to a trust with First Bank named as trustee. All of the income is to be paid to my husband, Abner, semiannually for the rest of his life. Upon his death the property is to be divided equally between my two sons or their estates. I leave $47,000 to the American Cancer Society. Assume the executor elected to claim the maximum marital deduction possible. Compute the following with respect to Bonnies estate: a. Gross estate b. Taxable estate c. Adjusted taxable gifts d. Estate tax base and basic exclusion amount portable to Abner e. Tentative tax on estate tax base f. Federal estate tax payable

Use the limits for 2019. The Tax Cuts and Jobs Act of 2017 increased the unified credit to $4,417,800, the tax on a basic exclusion amount of $11.18 million.