Jackson Holmes died unmarried in 2018 he left an estate valued at $15,850,000. His trust directed distribution as follows: $20,000 to local hospital, $160,000 to his alma mater, and the remainder to his three adult children. Death-related costs and expenses were $6,800 for funeral expenses, $40,000 paid to attorneys, $5,000 paid to accountants, and $30,000 paid to the trustee of his living trust. In addition, there were debts of $125,000. Use Exhibits 15.5 and 15.6 to calculate the federal estate tax due on Jacksons estate. Textbook Estimated Household Expenditures in Retirement:

A. Approximate number of years to retirement

B. Current level of annual household expenditures, excluding savings

C. Estimated household expenses in retirement as a percent of current expenses

D. Estimated annual household expenditures in retirement (B C)

Estimated Income in Retirement:

E. Social security, annual income $

F. Company/employer pension plans, annual amounts $

G. Other sources, annual amounts $

H. Total annual income (E + F + G) $- I. Additional required income, or annual shortfall (D - H) III. Inflation Factor: J. Expected average annual rate of inflation over the period to retirement % K. Inflation factor (in Appendix A): Based on years to retirement (A) and an expected average annual rate of inflation (J) of 0% 1.00 L. Size of inflation-adjusted annual shortfall (I K) IV. Funding the Shortfall: M. Anticipated return on assets held after retirement % N. Amount of retirement funds requiredsize of nest egg (L M) $- O. Expected rate of return on investments prior to retirement % P. Compound interest factor (in Appendix B): Based on years to retirement (A) and an expected rate of return on investments of 0% 0.0 Q. Annual savings required to fund retirement nest egg (N P) $- Note: Parts I and II are prepared in terms of current (todays) dollars.