Question
Use Worksheet 15.2 . When Jacob Kohler died unmarried in 2015, he left an estate valued at $8,400,000. His trust directed distribution as follows: $18,000
Use Worksheet 15.2. When Jacob Kohler died unmarried in 2015, he left an estate valued at $8,400,000. His trust directed distribution as follows: $18,000 to the local hospital, $170,000 to his alma mater, and the remainder to his three adult children. Death-related costs and expenses were $16,900 for funeral expenses, $45,000 paid to attorneys, $7,000 paid to accountants, and $30,000 paid to the trustee of his living trust. In addition, there were debts of $150,000. Use Worksheet 15.2 and Exhibit 15.7 and Exhibit 15.8 to calculate the federal estate tax due on his estate. Round your answer to nearest whole dollar.
Line | Computation | Item | Amount | Total Amount | ||||
1 | Gross estate | $ | ||||||
2 | Subtract sum of: | (a) | Funeral expenses | $ | ||||
(b) | Administrative expenses | |||||||
(c) | Debts | |||||||
(d) | Other expenses | |||||||
Total | ( | - | ) | |||||
3 | Result: | Adjusted gross estate | $ - | |||||
4 | Subtract sum of: | (a) | Marital deduction | |||||
(b) | Charitable deduction | |||||||
Total | ( | - | ) | |||||
5 | Result: | Taxable estate | $ - | |||||
6 | Add: | Adjusted taxable gifts (post-1976) | $ | |||||
7 | Result: | Estate tax base | $ - | |||||
8 | Compute: | Tentative tax on estate tax basea | $ | |||||
9 | Subtract sum of: | (a) | Gift tax payable on | $ | ||||
post-1976 gifts | ||||||||
(b) | Unified tax creditb | |||||||
Total | ($ | - | ) | |||||
10 | Result: | Total estate taxesc | - | |||||
11 | Subtract: | Other credits | ($ | ) | ||||
12 | Result: | Federal estate tax due | $ - | |||||
aUse Exhibit 15.7 to calculate the tentative tax. | ||||||||
bUse Exhibit 15.8 to determine the appropriate unified credit. | ||||||||
cNote that the amount shown on line 7 is a significant number, because most states use the same estate tax base as is used for the federal tax | ||||||||
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