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Jones is seriously ill and has $4.80 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 $4.80 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 wili). Assume all of his exemption equivalent was used and any taxable transfers will be subject to the highest transfer tax rate. (Refer to Exhibit 251 and Exhllitit 25-2.) 0-1. Determine how much gift tax Jones will owe if the transfers are made now. 0.2. 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 $5.4 mililon? Note: For all requirements, enter your answers in dollars and not in millions of dollars. EXHIBIT 25-1 Unified Transfer Tax Rates* The applicable credit and exemption are zero for estates that opted out of the estate tax in 2010. EXHIBIT 25-2 The Exembtion Eanivalent / Annlieahla Eval...tan Imount 'I Ine esiut uux was opuonu jor aeceuems aying in LUIU. In neu of the estate tax, exec and exemption are zero for taxpayers who opt out of the estate tax in 2010. Jones is seriously ill and has $4.80 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 wili). Assume all of his exemption equivalent was used and any taxable transfers will be subject to the highest transfer tax rate. (Refer to Exhibit 251 and Exhllitit 25-2.) 0-1. Determine how much gift tax Jones will owe if the transfers are made now. 0.2. 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 $5.4 mililon? Note: For all requirements, enter your answers in dollars and not in millions of dollars. EXHIBIT 25-1 Unified Transfer Tax Rates* The applicable credit and exemption are zero for estates that opted out of the estate tax in 2010. EXHIBIT 25-2 The Exembtion Eanivalent / Annlieahla Eval...tan Imount 'I Ine esiut uux was opuonu jor aeceuems aying in LUIU. In neu of the estate tax, exec and exemption are zero for taxpayers who opt out of the estate tax in 2010

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