Paolo Ferrari died in 2012, leaving an estate of $24,000,000. Paolo's wife died in 2009. In 2009, Paolo gave his son property that resulted in a taxable gift of $5,000,000 and upon which Paolo paid $1,100,000 in transfer taxes. Paolo had made no other taxable gifts during his life. Paolo's will provided a charitable bequest of $750,000 to his synagogue. Exhibits - Tax schedules and credits Exhibit 15.7 -- United Credits and Applicable Exclusion Amounts for Estates and Gifts: Exit 15.8 --Federal Unified Transfer Tax Rates: Year 2009 Applicable Exclusion Amount- Estates $2,000,000 $3,500,000 Unified Tax Credit- Gifts $345,800 $345,800 $330,800 Applicable Exclusion Amount -Gifts $1,000,000 $1,000,000 $1,000,000 2009 2010 2011 2012 2013 Unified Tax Credit Estates $780,800 $1,455,800 Estate tax repealed for 2010 $1.730,800 $1,772,800 $2,045,800 $2,081,800 52,117,800 52,125,800 32.141,000 54,417,000 $5,000,000 $5,120,000 2014 $1,730,800 $1,772,800 $5,045,800 $2,081,800 $2,117,800 $2,125,800 $2,141,800 54,417,800 $5,250,000 $5,340,000 $5,430,000 $5,340,000 $5,490,000 $11.180,000 $5,000,000 $5,120,000 $5,250,000 $5,340,000 $5,430,000 $5,340,000 $5,490,000 $11,180,000 2015 2016 2013 2015 Line 1 2 $0.00 $0.00 $0.00 $0.00 Use the following worksheet to calculate the federal estate tax due on Paolo Ferrart's estate. (Hint: Enter a value of $0 for any Mne that does not apply. Use Exhibit 15.7 to determine the appropriate unified tax credit. Use Exhibit 15.8 to calculate the tentative tax.) Computing Federal Estate Tax Due Name: Paolo Date: 11/30/2012 Computation Item Amount Total Amount Gross estate Subtract sum of (a) Funeral expenses (b) Administrative expenses (c) Debts (d) Other expenses Total: ($0.00) Adjusted gross estate (a) Marital deduction $0.00 (b) Charitable deduction Total: Result: Taxable estate 3 Adjusted taxable gifts (post-1976) Estate tax base S Compute: Tentative tax on estate tax base 9 (6) Gift tax payable on post-1976 gifts (b) Unified tax credit 3 Result: 4 Subtract sum of: 5 6 Add: 7 Result: 8 Subtract sum of: Total: 10 Result: Total estate taxes 11 Subtract: Other credits ($0.00) 12 Result: Federal estate tax due