Use Worksheet 15.5

When Jackson Holmes died in 2018, he left an estate valued at $7,800,000. 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 were $16,400 for funeral expenses, $30,000 paid to attorneys, $4,500 paid to accountants, and $30,000 paid to the trustee of his living trust. In addition, there were debts of $170,000. Use Worksheet 15.1 and Exhibit 15.5

Home Insert Draw Page Layout lids Udld H40 B C D E F G COMPUTING FEDERAL ESTATE TAX DUE 1 2 3 Name 6 Line Date Computation Item Amount Total Amount 1 Grossestate 10 2 Subtract sum of: $ (a) Funeral expenses (b) Administrative expenses 12 14 (c) Debts 16 (d) Other expenses 18 Total 20 3 Result: $ 22 4 Subtract sum of: Adjusted gross estate (a) Marital deduction (b) Charitable deduction Total 24 26 28 5 Result: $ 30 6 Add: $ 32 7 Result: $ 34 8 S Compute Subtract sum of: Taxable estate Adjusted taxable gifts (post-1976) Estate tax base Tentative tax on estate tax bose (a) Gift tax payable on post-1976 gifts (b) Unified tax credit Total 9 $ 36 37 II 39 is 43 10 Result: Total death taxes $ 45 11 Subtract: State death-tax credit is $ 47 12 Result: Federal estate tax due 48 49 57 to calculate the stativet 50 Ure 158 to determine the propriate wifederer Note that the amount shown on line 10 is the part number te montes are 51 se mening that the waterly called the state death acredt, door dollar at 52 UD 159 to calculate the state deathered 53 54 55 56 57 SB 59 60