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Montgomery has decided to engage In wealth planning and has listed the value of his assets below. The life Insurance has a cash surrender value
Montgomery has decided to engage In wealth planning and has listed the value of his assets below. The life Insurance has a cash surrender value of $146,000, and the proceeds are payable to Montgomery's estate. The Walen Trust Is an Irrevocable trust created by Montgomery's brother 10 years ago and contalns assets currently valued at $800,000. The income from the trust is payable to Montgomery's falthful butler, Walen, for his life, and the remainder is payable to Montgomery or his estate. Walen is currently 37 years old, and the $7520 interest rate is currently 5.4 percent. Montgomery is unmarrled and plans to leave all his assets to his surviving relatives. (Refer to Exhibit 25-1, Exhiblt 25-2 and Exhibit 25-4.) Required: a. Calculate the amount of the estate tax due (If any), assuming Montgomery dles this year and has never made any taxable glits. b. Calculate the amount of the estate tax due (If any). assuming Montgomery dles this year and made one taxable glft in 2006 . The taxable glft was $1 million, and Montgomery used his 2006 applicable credit to avold payling any glit tax. c. Calculate the amount of the estate tax due (If any). assuming Montgomery dles this year and made one taxable glft in 2006 . The taxable glft was $5 million, and Montgomery used his $1 million 2006 applicable credit to reduce the glft tax in 2006 . Montgomery plans to bequeath his Investments to charlty and leave his remaining assets to his surviving relatives. (For all requirements, enter your answers in dollars and not in millions of dollars.) Montgomery has decided to engage In wealth planning and has listed the value of his assets below. The life Insurance has a cash surrender value of $146,000, and the proceeds are payable to Montgomery's estate. The Walen Trust Is an Irrevocable trust created by Montgomery's brother 10 years ago and contalns assets currently valued at $800,000. The income from the trust is payable to Montgomery's falthful butler, Walen, for his life, and the remainder is payable to Montgomery or his estate. Walen is currently 37 years old, and the $7520 interest rate is currently 5.4 percent. Montgomery is unmarrled and plans to leave all his assets to his surviving relatives. (Refer to Exhibit 25-1, Exhiblt 25-2 and Exhibit 25-4.) Required: a. Calculate the amount of the estate tax due (If any), assuming Montgomery dles this year and has never made any taxable glits. b. Calculate the amount of the estate tax due (If any). assuming Montgomery dles this year and made one taxable glft in 2006 . The taxable glft was $1 million, and Montgomery used his 2006 applicable credit to avold payling any glit tax. c. Calculate the amount of the estate tax due (If any). assuming Montgomery dles this year and made one taxable glft in 2006 . The taxable glft was $5 million, and Montgomery used his $1 million 2006 applicable credit to reduce the glft tax in 2006 . Montgomery plans to bequeath his Investments to charlty and leave his remaining assets to his surviving relatives. (For all requirements, enter your answers in dollars and not in millions of dollars.)
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