Instructions: Calculating the value of estate tax using the charts. FCS 407: Estate Planning for Families Unlimited Marital Tax Calculating Estate Tax Dennis has an estate valued at $11,000,000. In addition, there is a fully paid-up life insurance policy on Mike's life that has a $2,000,000 death benefit. Dennis is married to Camille and has two children. Dennis is expected to dies before Camille, who is substantially younger than him. Dennis and Camille have asked you to help them with their estate planning and would like you to consider the following scenarios. Assume for each scenario funeral and administration expense of $150,000 and that all of Dennis's assets, including the death benefit on the life insurance policy be owns on his life, pass to Camille. Dennis's gross estate includes the $11,000,000 in assets that he held at the date of his death, plus the $2,000,000 death benefit from the life insurance policy Dennis owned on this life at the time of the death. Note that Dennis has not made of his applicable estate tax credit nor did his executor that to transfer his unused estate- exemption to Camille (they failed to elect portability) A) How much is Dennis's Estate Tax Liability? Gross Estate Less Deductions: Last Medical Expenses Administrative Costs Funeral Expenses Debts of the Decedent Losses During the administration of the Estate Equals: Adjusted Gross Estate Less: Unlimited Charitable Deduction Less: Unlimited Marital Deduction Less: State Death Tax Deduction Equals: Taxable Estate Add: Previous Taxable Gifts (post 1976) Equals: Tentative Tax Base Tentative Tax Less: Allowable Credits Credit for Previous Gift Tax Paid Applicable Estate Tax Credit (Unified Credit) Credit for Tax Paid on Prior Transfers Foreign Death Tax Credit ESTATE TAX CALCULATION $13.000.000 $150K