In 2017 Warren made $600,000 in taxable gifts but did not have to pay any gift tax. The unified credit was $4,577,800. In 2021, when Warren died, the gifted property was worth $825,000. Warrens taxable estate was (gross estate minus estate tax deductions) was $11,580,000. The prevailing estate tax rate was 40%.

HINT: Use the template below to compute Warren's estate tax payable in 2021

Taxable estate$..................

Add: Adjustable taxable gifts. ............

Total Estate Tax Base$ .................

Estate Tax Payable = [prevailing tax rate of 40% x Total Estate Tax Base) (Unified credit)]