Suppose Vince dies this year with a gross estate of $70 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 $28 million to Millie and the remainder to charity. c. Vince leaves $28 million to Millie and the remainder to his son, Paul, d. Vince leaves $28 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. EXHIBIT 25-1 Unified Transfer Tax Rates* 80,000 Tax Base Equal to or Over Not Over Tentative Tax Plus of Amount Over $0 $10,000 $ 0 18% $ 0 10,000 20,000 1,800 20 10,000 20,000 40,000 3,800 22 20,000 40,000 60,000 8,200 24 40,000 60,000 80,000 13,000 26 60,000 100,000 18,200 28 80,000 100,000 150,000 23,800 30 100,000 150,000 250,000 38,800 32 150,000 250,000 500,000 70,800 34 250,000 500,000 750,000 155,800 37 500,000 750,000 1,000,000 248,300 39 750,000 1,000,000 345,800 40 1,000,000 *The applicable credit and exemption are zero for estates that opted out of the estate tax in 2010. EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax 1986 $500,000 1987-1997 600,000 1998 625,000 1999 650,000 2000-2001 675,000 2002-2003 1,000,000 2004-2005 1,000,000 2006-2008 1,000,000 20092010* 1,000,000 2011 5,000,000 2012 5,120,000 2013 5,250,000 2014 5,340,000 2015 5,430,000 2016 5,450,000 2017 5,490,000 2018 11,180,000 2019 11,400,000 2020 11,580,000 Estate Tax $500,000 600,000 625,000 650,000 675,000 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 11,180,000 11,400,000 11,580,000 *The applicable credit and exemption are zero for taxpayers who opt out of the estate tax in 2010