TXX5763

S1 died November 30, 2013, survived by 80-year-old S2. The 7520 rate was 4%. They had an ABC estate plan. At S1s death their holdings had the following net value:

S1 Separate Property, $6,400,000

Community Property, $6,000,000

S2 Separate Property, $1,800,000

$14,200,000

S2 died October 9, 2015, and the trusts had the following values:

Trust A: $5,000,000 Trust B: $6,422,872 Trust C: $5,077,128

	1)At what value will Trust A be funded?
.	2)At what value will Trust B be funded?
	3)At what value will Trust C be funded?
	4)What is the QTIP fraction necessary to equalize the two estates at $7,100,000?
	5)What is S1's 2013 estate tax liability?
	6)S2's executor will take advantage of the prior transfer credit. Regarding the determination of the PTC for S2's estate, what is "credit limit one"?
	7)S2's taxable estate was correctly determined to be $7,813,830. S2's executor will take advantage of the prior transfer credit. Regarding the determination of the PTC for S2's estate, what is "credit limit two"? Note, Table S factor for a life estate (age 80, 4%) is 0.26493.
-	8)What is the prior transfer credit for S2's estate?

A.	$673,982 (allow for rounding)
B.	$740,000
C.	$2,000,000/$9,400,000 QTIP fraction should be elected
D.	$2,300,000/$5,000,000 QTIP fraction should be elected
E.	None of the other answers is correct
F.	$2,300,000/$4,150,000 QTIP fraction should be elected
G.	$4,800,000
H.	$196,048 (allow for rounding)
I.	$5,250,000
J.	$1,105,169
K.	$4,150,000