Question
TXX5767 At his death in 2012, Zoltan's will provided for the creation of a trust into which his entire $15 mil. estate was to be
TXX5767
At his death in 2012, Zoltan's will provided for the creation of a trust into which his entire $15 mil. estate was to be transferred. The terms of the trust provide for Zoltan's wife to receive the income from the trust for as long as she lives. Upon the death of Zoltan's widow, the trust is to be terminated and distributed in equal shares to Zoltan's surviving children (or to the grandchildren, in the event that a child pre-deceased Zoltan's widow), except that the trust would not be terminated until the youngest of the remainder beneficiaries of Zoltan's trust reached the age of 30. All of Zoltan's children were alive when he died, but all of the children had died by the time Zoltan's widow died. Because Zoltan had not used any of his GST exemption during his lifetime, his entire GST exemption ($5,120,000 in 2012) was automatically allocated to his testamentary trust at his death. On a timely filed estate tax return, Zoltan's executor made a $6,000,000 (i.e., 40%) QTIP election with respect to this trust. When Zoltan's widow died, the youngest grandchild was 25; therefore, the trust continued to hold the property for the benefit of the grandchildren for 5 more years. Determine the GST due, if any, at each of the following event dates.
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