Suppose Vince dies this year with a gross estate of $105 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 $42 million to Millie and the remainder to charity.

c. Vince leaves $42 million to Millie and the remainder to his son, Paul.

d. Vince leaves $42 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* Plus of Amo S 10 O 18% 20 22 24 20 40 26 60 Tax Base Equal to or Over $ 0 10,000 20,000 40,000 60.000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 Not Over $10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500.000 750,000 1,000,000 Tentative Tax $ 0 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70,800 155,800 248,300 345,800 80 28 30 32 100 150 25 34 37 500 39 750 1.00 40 *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 1986 1987-1997 1998 1999 2000-2001 2002-2003 2004-2005 2006-2008 2009-2010* Gift Tax $500,000 600,000 625,000 650,000 675,000 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 5,490,000 11.180,000 11,400,000 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 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 *The applicable credit and exemption are zero for taxpayers who opt out of the estate tax in 2010