Suppose Vince dies this year with a gross estate of $80 million and no adjusted prior gifts. Assume the estate qualifies for the martial deduction. Calculate the amount of estate tax due (if any) under the following alternative conditions. (Refer to Exhibit 25-1 and Exhibit 25-2.) Required a. Vince leaves his entire estate to his spouse, Millie. b. Vince leaves $32 million to Millie and the remainder to charity. c. Vince leaves $32 million to Millie and the remainder to his son, Paul. d. Vince leaves $32 million to Millie and the remainder to a trust whose trustee is required to pay income to Millie for her life and the remainder to Paul. For all requirements, enter your answer in millions rounded to 2 decimal places. Leave no answer blank. Enter zero if applicable.) Answer is not complete. Amount of estate tax Amount of estate tax Amount of estate tax Amount of estate tax million million million million C. EXHIBIT 25-1 Unified Transfer Tax Rates* Tax Base Equal to or Over Plus Tentative Tax Not Over of Amount Over $ 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 18% 20 0 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 0 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70,800 155,800 248,300 345,800 0 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 24 26 28 30 32 34 37 39 40 The applicable credit and exemption Is zero for estates that opted out of the estate tax In 2010. EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax Estate Tax 1986 S 500.000 S 500,000 1987-1997 600.000 600.000 1998 625,000 650,000 675.000 625.000 650.000 675.000 1999 2000-2001 2002-2003 1.000.000 1.000,000 1,000,000 1.000,000 5,000,000 5,120,000 5,250.000 5,340,000 5,430,000 5.450,000 1.000,000 1.500,000 2,000,000 3,500,000 5,000,000 5,120,000 5.250,000 5,340,000 5,430,000 5.450,000 5,490,000 2004-2005 2006-2008 2009-2010* 2011 2012 2013 2014 2015 2016 2017 2018 5.490.000 11,180,000 The applicable credit and exemption is zero for 11180.000 taxpayers who opt out of the estate tax in 2010 Suppose Vince dies this year with a gross estate of $80 million and no adjusted prior gifts. Assume the estate qualifies for the martial deduction. Calculate the amount of estate tax due (if any) under the following alternative conditions. (Refer to Exhibit 25-1 and Exhibit 25-2.) Required a. Vince leaves his entire estate to his spouse, Millie. b. Vince leaves $32 million to Millie and the remainder to charity. c. Vince leaves $32 million to Millie and the remainder to his son, Paul. d. Vince leaves $32 million to Millie and the remainder to a trust whose trustee is required to pay income to Millie for her life and the remainder to Paul. For all requirements, enter your answer in millions rounded to 2 decimal places. Leave no answer blank. Enter zero if applicable.) Answer is not complete. Amount of estate tax Amount of estate tax Amount of estate tax Amount of estate tax million million million million C. EXHIBIT 25-1 Unified Transfer Tax Rates* Tax Base Equal to or Over Plus Tentative Tax Not Over of Amount Over $ 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 18% 20 0 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 0 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70,800 155,800 248,300 345,800 0 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 24 26 28 30 32 34 37 39 40 The applicable credit and exemption Is zero for estates that opted out of the estate tax In 2010. EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax Estate Tax 1986 S 500.000 S 500,000 1987-1997 600.000 600.000 1998 625,000 650,000 675.000 625.000 650.000 675.000 1999 2000-2001 2002-2003 1.000.000 1.000,000 1,000,000 1.000,000 5,000,000 5,120,000 5,250.000 5,340,000 5,430,000 5.450,000 1.000,000 1.500,000 2,000,000 3,500,000 5,000,000 5,120,000 5.250,000 5,340,000 5,430,000 5.450,000 5,490,000 2004-2005 2006-2008 2009-2010* 2011 2012 2013 2014 2015 2016 2017 2018 5.490.000 11,180,000 The applicable credit and exemption is zero for 11180.000 taxpayers who opt out of the estate tax in 2010