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Vince and Millie are married. Vince dies this year with a gross estate of $25 million and no adjusted prior gifts. Assume the estate qualifies

Vince and Millie are married. Vince dies this year with a gross estate of $25 million and no adjusted prior gifts. Assume the estate qualifies for the martial deduction.

Calculate the amount of estate tax due (if any) under the following alternative conditions: (Refer to Exhibit 25-1 and Exhibit 25-2.)

EXHIBIT 25-1 Unified Transfer Tax Rates*

Tax Base Equal to or Over Not Over Tentative Tax Plus of Amount Over
$ 0 $10,000 $ 0 18% $ 0
10,000 20,000 1,800 20 10,000
20,000 40,000 3,800 22 20,000
40,000 60,000 8,200 24 40,000
60,000 80,000 13,000 26 60,000
80,000 100,000 18,200 28 80,000
100,000 150,000 23,800 30 100,000
150,000 250,000 38,800 32 150,000
250,000 500,000 70,800 34 250,000
500,000 750,000 155,800 37 500,000
750,000 1,000,000 248,300 39 750,000
1,000,000 345,800 40 1,000,000

*The applicable credit and exemption are zero for estates that opted out of the estate tax in 2010.

EXHIBIT 25-2 The Exemption Equivalent / Applicable Exclusion Amount

Year of Transfer Gift Tax Estate Tax
1986 $500,000 $500,000
19871997 600,000 600,000
1998 625,000 625,000
1999 650,000 650,000
20002001 675,000 675,000
20022003 1,000,000 1,000,000
20042005 1,000,000 1,500,000
20062008 1,000,000 2,000,000
20092010* 1,000,000 3,500,000
2011 5,000,000 5,000,000
2012 5,120,000 5,120,000
2013 5,250,000 5,250,000
2014 5,340,000 5,340,000
2015 5,430,000 5,430,000
2016 5,450,000 5,450,000
2017 5,490,000 5,490,000
2018 11,180,000 11,180,000
2019 11,400,000 11,400,000
2020 11,580,000 11,580,000
2021 11,700,000 11,700,000
2022 12,060,000 12,060,000

*The estate tax was optional for decedents dying in 2010. In lieu of the estate tax, executors could opt to have the adjusted tax basis of the assets in the gross estate carry over to the heirs of the decedent. The applicable credit and exemption are zero for taxpayers who opt out of the estate tax in 2010.

Required:

Vince leaves $10 million to Millie and the remainder to his son, Paul.

Vince leaves $10 million to Millie and the remainder to a trust whose trustee is required to pay income to Millie for her life and the remainder to Paul.

Note: For all requirements, enter your answer in millions rounded to 3 decimal places. Leave no answer blank. Enter zero if applicable.

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