Distribution of estate, taxable estate, and the resulting tax Determine the correct value for each of the following questions: 1. Assuming that a single person has made taxable lifetime gifts of $1.2 million, what is the largest taxable estate that could exist and still not incur any estate tax? 2. Helen made separate lifetime taxable gifts of $1.5 million and died leaving her entire $5 million estate to her husband George. George had made taxable gifts of $500,000 prior to Helen's death. In the year following her death, George made gifts of $50,000 to each of their four children. George died shortly after making the gifts leaving a taxable estate of $7 million, including the intact $5 million inherited from Helen. What is the net estate tax due on George's estate? 3. Given the facts in item (2) above, now assume that Helen had established a credit shelter trust in the amount of $3.5 million for the benefit of her husband George. What is the net estate tax due on George's estate? 4. Roger Pillsbury died leaving an estate consisting of the following: a 1984 Ford Mustang, a savings account of $40,000 at LaSalle Bank, and a parcel of land in Oklahoma that was subsequently sold for $195,000. His will stipulated that the Ford Mustang go to his brother Robert and that his sister Ann receive $60,000 from his savings account at LaSalle Bank. Per his will, each of his six children were to receive $40,000, and the balance of his estate was to be given to the University of Oklahoma. What amount would Roger's sister receive from his estate? 5. Given the facts of item (4) above, assume that Roger had hoped that the University of Oklahoma would receive $100,000 from his estate. What would the land in Oklahoma have had to sell for in order for this to have been possible? USE THE TABLES BELOW TO ANSWER THE QUESTION. THANK YOU!

Exercise 20-2, part 1
Total credits against tentative tax on total transfers:
Tax on taxable gift tax (tax on 1.2 million of427,800 less lifetime exclusion amount of 345,800.		?
Unified credit		?
Total credits to totally offset tax		?
Total tax on transfers tp be offset by above credits (this is the answer from above)		?
Tax on first 2 million	?
Tax on balance over 2 million	?		amount is equal to 45% of ???
		?
Total of all transfers
Total transfers	3,684,000	(2 million plus 1,684,000)
Less taxable gifts	?
Net estate tax	?
Part 2
Taxable estate
Post 1976 taxable gifts:
Prior taxable gift
Taxable gift to children
Unified tax base
Tentative tax
Less Credits:
Tax on taxable gifts
Unified credit
Net estate tax
Part 3
	Helen	George
Taxable estate before marital deduction
Less marital deduction
Taxable estate
Post 1976 taxable gifts:
Prior taxable gift
Taxable gift to children
Unified tax base
Tentative tax
Less Credits:
Tax on taxable gifts
Unified credit
Net estate tax
Part 4
Residual legacy:
Remaining bank balance to sister Ann
Amount to children
Total
Amount to be allocated between residual legatees
Portion allocated to sister Ann	X 20/260
Amount allocated to sister Ann
Part 5:
The sum of the residual legacies would be:
Remaining bank balance to sister Ann
Amount to children
Amount to University of Oklahoma
Total needed from sale of land