Thomas and Angie have the following data. Thomas died in an accident in 2012. They live in a community property state.
Thomas and both have wills. They give one another 100% of their assets
1. What is Thomas' probate estate?
2. What is Thomas' gross estate?
3. Complete an estate tax return.
ASSETS
ASSET	OWNERSHIP	VALUE
PERSONAL RESIDENCE	Community Property	$1,200,000
BOAT*	JTWROS	$50,000
Thomas' 401(k)	Fee Simple	$150,000
Joint Savings (w/ wife)	Community Property	$10,000
Car 1	Community Property	$40,000
Motorcycle	Fee Simple	$10,000
Brokerage Account (Todd)	Fee Simple	$3,500,000
Brokerage Account	Community Property	$4,500,000
Car 2 (Angie)	Fee Simple	$50,000
Savings Accout (Todd)	Fee Simple	$15,000
Rollover IRA**	Fee Simple	$200,000
Other financial items
Term Life Insurance Policy A - OwNer is Angie and the beneficiary is her brother - DB = $1,000,000
Term Life Insurance Policy A - Owner is Thomas and the beneficiary is Angie. DB is $2,000,000
ILIT that owns a life insurance possible that was gifted by Todd 2 years ago. DB is $1,500,000 - Beneficiary is his Son Thomas and his brother is trustee.
They used $1,000,000 of their estate applicable exclusion. Assume they paid $120,000 in gift taxes - this was in 2015
Todd has a general power of appointment on his mothers assets of $500,000
Assume that debts to be paid off at Todd's death equals $500,000. His estate will incur $20,00 in funeral costs and he will give $1,000,000 toTexas A&M Commerce (charity)
* Invested $15,000 (50%) with his brother. The ownership is JTWROS.
** The beneficiary is his ex wife who died 10 years ago. No contingent beneficiary. Annual Gift Tax Exclusions

APPLICABLE GIFT AND ESTATE TAX CREDITS AND EXCLUSION AMOUNTS Applicable Estate Tax Credit Applicable Gift Applicable Gift Tax Credit Estate Tax Year of Death ?? uivalen Equivalency 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 -2008 2009 2010 2011 2012 2013 2014 2015 2016 $192,800 $202,050 $211,300 $220,550 $220,550 $345,800 $345,800 $555,800 $555,800 $780,800 $1,455,800 REPEALED* $1,730,800 $1,772,800 $2,045,800 $2,081,800 $2,117,800 $2,125,800 $600,000 $625,000 $650,000 $675,000 $675,000 $1,000,000 $1,000,000 $1,500,000 $1,500,000 $2,000,000 $3,500,000 REPEALED $5,000,000 $5,120,000 $5,250,000 $5,340,000 $5,430,000 $5,450,000 $192,800 $202,050 $211,300 $220,550 $220,550 $345,800 $345,800 $345,800 $345,800 $345,800 $345,800 $330,800 $1,730,800 $1,772,800 $2,045,800 $2,081,800 $2,117,800 $2,125,800 $600,000 $625,000 $650,000 $675,000 $675,000 $1,000,000 $1,000,000 $1,000,000 $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 TRA 2010 permits estate representatives to opt out of the TRA 2010 regime ($5,450,000 exemption and 40 percent maximum tax rate on excess transfers) APPLICABLE GIFT AND ESTATE TAX CREDITS AND EXCLUSION AMOUNTS Applicable Estate Tax Credit Applicable Gift Applicable Gift Tax Credit Estate Tax Year of Death ?? uivalen Equivalency 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 -2008 2009 2010 2011 2012 2013 2014 2015 2016 $192,800 $202,050 $211,300 $220,550 $220,550 $345,800 $345,800 $555,800 $555,800 $780,800 $1,455,800 REPEALED* $1,730,800 $1,772,800 $2,045,800 $2,081,800 $2,117,800 $2,125,800 $600,000 $625,000 $650,000 $675,000 $675,000 $1,000,000 $1,000,000 $1,500,000 $1,500,000 $2,000,000 $3,500,000 REPEALED $5,000,000 $5,120,000 $5,250,000 $5,340,000 $5,430,000 $5,450,000 $192,800 $202,050 $211,300 $220,550 $220,550 $345,800 $345,800 $345,800 $345,800 $345,800 $345,800 $330,800 $1,730,800 $1,772,800 $2,045,800 $2,081,800 $2,117,800 $2,125,800 $600,000 $625,000 $650,000 $675,000 $675,000 $1,000,000 $1,000,000 $1,000,000 $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 TRA 2010 permits estate representatives to opt out of the TRA 2010 regime ($5,450,000 exemption and 40 percent maximum tax rate on excess transfers)