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Jones is seriously ill and has $4.10 million of property that he wants to leave to his four children. Jones is considering making a current

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Jones is seriously ill and has $4.10 million of property that he wants to leave to his four children. Jones is considering making a current gift of the property (rather than leaving the property to pass through a will. Assume all of his exemption equivalent was used and any taxable transfers will be subject to the highest transfer tax rate. (Refer to and a-1. Determine how much gift tax Jones will owe if the transfers are made now. a-2. If Jones makes a current gift, how much estate tax will be saved if Jones dies after three years, during which time the property appreciates to $5.05 million? Note: For all requirements, enter your answers in dollars and not in millions of dollars. \begin{tabular}{|l|c|c|} \hline Year of Transfer & Gift Tax & Estate Tax \\ \hline 1986 & $500,000 & $500,000 \\ \hline 19871997 & 600,000 & 600,000 \\ \hline 1998 & 625,000 & 625,000 \\ \hline 1999 & 650,000 & 650,000 \\ \hline 20002001 & 675,000 & 675,000 \\ \hline 20022003 & 1,000,000 & 1,000,000 \\ \hline 20042005 & 1,000,000 & 1,500,000 \\ \hline 20062008 & 1,000,000 & 2,000,000 \\ \hline 20092010 & 1,000,000 & 3,500,000 \\ \hline 2011 & 5,000,000 & 5,000,000 \\ \hline 2012 & 5,120,000 & 5,120,000 \\ \hline 2013 & 5,250,000 & 5,250,000 \\ \hline 2014 & 5,340,000 & 5,340,000 \\ \hline 2015 & 5,430,000 & 5,430,000 \\ \hline 2016 & 5,450,000 & 5,450,000 \\ \hline 2017 & 5,490,000 & 5,490,000 \\ \hline 2018 & 11,180,000 & 11,180,000 \\ \hline 2019 & 11,400,000 & 11,400,000 \\ \hline 2020 & 11,580,000 & 11,580,000 \\ \hline 2021 & 11,700,000 & 11,700,000 \\ \hline 2022 & 12,060,000 & 12,060,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline Tax Base Equal to or Over & Not Over & Tentative Tax & Plus & \multicolumn{1}{|c|}{ of Amount Over } \\ \hline$0 & $10,000 & $0 & 18% \\ \hline 10,000 & 20,000 & 1,800 & 20 & 10,000 \\ \hline 20,000 & 40,000 & 3,800 & 22 & 20,000 \\ \hline 40,000 & 60,000 & 8,200 & 40,000 \\ \hline 60,000 & 80,000 & 13,000 & 24 & 60,000 \\ \hline 80,000 & 100,000 & 18,200 & 80,000 \\ \hline 100,000 & 150,000 & 23,800 & 28 & 100,000 \\ \hline 150,000 & 250,000 & 38,800 & 30 & 150,000 \\ \hline 250,000 & 500,000 & 70,800 & 32 & 250,000 \\ \hline 500,000 & 750,000 & 155,800 & 34 & 50,000 \\ \hline 750,000 & 1,000,000 & 248,300 & 37 & \\ \hline 1,000,000 & & 345,800 & 39 & \\ \hline \end{tabular}

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