Suppose Vince dies this year with a gross estate of $25 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 14-1 and Exhibit 14-2.) Required: a. Vince leaves his entire estate to his spouse, Millie. b. Vince leaves $10 million to Millie and the remainder to charity. c. Vince leaves $10 million to Millie and the remainder to his son. Paul. d. Vince leaves $10 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 3 decimal places. Leave no answer blank. Enter zero if applicable.) million Amount of estate tax Amount of estate tax Amount of estate tax Amount of estate tax b. c. d. million million Hank is a single individual who possesses a life insurance policy worth $300,000 that will pay his two children a total of $800,000 upon his death. This year Hank transferred the policy and all incidents of ownership to an irrevocable trust that pays Income annually to his two children for 15 years and then distributes the corpus to the children in equal shares. Assume that Hank has made only one prior taxable gift of $5 million in 2011. (Refer to Exhibit 14-1 and Exhibit 14-2) Required: a. Calculate the amount of gift tax due (if any) on the gift. b. Calculate the amount of cumulative taxable transfers for estate tax purposes if Hank dies this year but after the date of the gift. At the time of his death, Hank's probate estate is $10 million divided in equal shares between his two children. (For all requirements, enter your answers in dollars and not in millions of dollars.) a. Amount of gift tax Amount of cumulative taxable transfers for estate tax purposes b. I HAIL Which of the Timeout alert Home Student Google 220...my now. Cyberserve Code Revalue Apple Favorites SALE - HoneyBum #1 Human Hair...tural & H Seven exhibitch25... Suppose Vince Get Homework. exhibit_ch25 1... EXHIBIT 25-1 Unified Transfer Tax Rates Tax Base Equal to or Over Not Over Tentative Tax of Amount Over 18% 20 22 0 10,000 20,000 40,000 60,000 80,000 100,000 150.000 250,000 500,000 750,000 1,000,000 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 "The applicable credit and exemption is zero for estates that opted out of the estate tax in 2010. MacBook Pro EXHIBIT 25-2 Ine Exemption Equivalent Year of Transfer Gift Tax Estate Tax 1986 $ 500,000 $ 500.000 1987-1997 600,000 600.000 1998 625,000 625.000 1999 650,000 650,000 2000-2001 675,000 675,000 2002-2003 1.000.000 1,000,000 20042005 1,000,000 1,500,000 2006-2008 1,000,000 2,000,000 2009-2010 1.000.000 3.500.000 2011 5,000,000 5,000,000 2012 5.120,000 5,120,000 2013 5.250.000 5.250,000 2014 5.340,000 5,340.000 2015 5,430,000 5,430,000 2016 5,450,000 5,450,000 2017 5,490,000 5,490,000 2018 11.180,000 11,150,000 MacBook Pro Suppose Vince dies this year with a gross estate of $25 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 14-1 and Exhibit 14-2.) Required: a. Vince leaves his entire estate to his spouse, Millie. b. Vince leaves $10 million to Millie and the remainder to charity. c. Vince leaves $10 million to Millie and the remainder to his son. Paul. d. Vince leaves $10 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 3 decimal places. Leave no answer blank. Enter zero if applicable.) million Amount of estate tax Amount of estate tax Amount of estate tax Amount of estate tax b. c. d. million million Hank is a single individual who possesses a life insurance policy worth $300,000 that will pay his two children a total of $800,000 upon his death. This year Hank transferred the policy and all incidents of ownership to an irrevocable trust that pays Income annually to his two children for 15 years and then distributes the corpus to the children in equal shares. Assume that Hank has made only one prior taxable gift of $5 million in 2011. (Refer to Exhibit 14-1 and Exhibit 14-2) Required: a. Calculate the amount of gift tax due (if any) on the gift. b. Calculate the amount of cumulative taxable transfers for estate tax purposes if Hank dies this year but after the date of the gift. At the time of his death, Hank's probate estate is $10 million divided in equal shares between his two children. (For all requirements, enter your answers in dollars and not in millions of dollars.) a. Amount of gift tax Amount of cumulative taxable transfers for estate tax purposes b. I HAIL Which of the Timeout alert Home Student Google 220...my now. Cyberserve Code Revalue Apple Favorites SALE - HoneyBum #1 Human Hair...tural & H Seven exhibitch25... Suppose Vince Get Homework. exhibit_ch25 1... EXHIBIT 25-1 Unified Transfer Tax Rates Tax Base Equal to or Over Not Over Tentative Tax of Amount Over 18% 20 22 0 10,000 20,000 40,000 60,000 80,000 100,000 150.000 250,000 500,000 750,000 1,000,000 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 "The applicable credit and exemption is zero for estates that opted out of the estate tax in 2010. MacBook Pro EXHIBIT 25-2 Ine Exemption Equivalent Year of Transfer Gift Tax Estate Tax 1986 $ 500,000 $ 500.000 1987-1997 600,000 600.000 1998 625,000 625.000 1999 650,000 650,000 2000-2001 675,000 675,000 2002-2003 1.000.000 1,000,000 20042005 1,000,000 1,500,000 2006-2008 1,000,000 2,000,000 2009-2010 1.000.000 3.500.000 2011 5,000,000 5,000,000 2012 5.120,000 5,120,000 2013 5.250.000 5.250,000 2014 5.340,000 5,340.000 2015 5,430,000 5,430,000 2016 5,450,000 5,450,000 2017 5,490,000 5,490,000 2018 11.180,000 11,150,000 MacBook Pro