Harold and Maude are married and live in a common-law state. Neither have made any taxable gifts and Maude owns (holds title to) all their property. She dies with a taxable estate of $32 million and leaves it all to Harold. He dies several years later, leaving the entire $32 million to their three children. (Refer to Exhibit 25-1 and Exhibit 25-2.)

Calculate how much estate tax is due from Harolds estate. (Enter your answer in dollars and not in millions of dollars.)

EXHIBIT 25-1 Unified Transfer Tax Rates* N ot Over $10,000 20,000 40,000 Plus 18% 20 22 24 of Amount Over $ 0 10,000 20,000 40,000 60,000 80,000 60,000 Tax Base Equal to or Over $ 0 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 Tentative Tax $ 0 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70,800 155,800 248,300 345,800 28 100,000 150,000 250,000 500,000 750,000 30 32 34 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 37 1,000,000 30 40 *The applicable credit and exemption is zero for estates that opted out of the estate tax in 2010. EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax Estate Tax $500,000 1986 $500,000 1987-1997 600,000 600,000 1998 625,000 625,000 650,000 675,000 1999 2000-2001 20022003 20042005 20062008 20092010* 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000 2011 2012 5,120,000 650,000 675,000 1,000,000 1,500,000 2,000,000 3,500,000 5,000,000 5,120,000 5,250,000 5,340,000 5,430,000 5,450,000 5,490,000 11,180,000 11,400,000 UUUU 2013 5,250,000 2014 2015 2016 5,340,000 5,430,000 5,450,000 5,490,000 11,180,000 11,400,000 2017 2018 2019 *The applicable credit and exemption is zero for taxpayers who opt out of the estate tax in 2010. EXHIBIT 25-1 Unified Transfer Tax Rates* N ot Over $10,000 20,000 40,000 Plus 18% 20 22 24 of Amount Over $ 0 10,000 20,000 40,000 60,000 80,000 60,000 Tax Base Equal to or Over $ 0 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 Tentative Tax $ 0 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70,800 155,800 248,300 345,800 28 100,000 150,000 250,000 500,000 750,000 30 32 34 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 37 1,000,000 30 40 *The applicable credit and exemption is zero for estates that opted out of the estate tax in 2010. EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax Estate Tax $500,000 1986 $500,000 1987-1997 600,000 600,000 1998 625,000 625,000 650,000 675,000 1999 2000-2001 20022003 20042005 20062008 20092010* 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000 2011 2012 5,120,000 650,000 675,000 1,000,000 1,500,000 2,000,000 3,500,000 5,000,000 5,120,000 5,250,000 5,340,000 5,430,000 5,450,000 5,490,000 11,180,000 11,400,000 UUUU 2013 5,250,000 2014 2015 2016 5,340,000 5,430,000 5,450,000 5,490,000 11,180,000 11,400,000 2017 2018 2019 *The applicable credit and exemption is zero for taxpayers who opt out of the estate tax in 2010