Question
When Yaakov died in March 2013, his gross estate was valued at $8.5 million. The marginal estate tax rate exceeded hisestate's marginal income tax rate
When Yaakov died in March 2013, his gross estate was valued at $8.5 million. The marginal estate tax rate exceeded hisestate's marginal income tax rate because the estate collected only about $5,000 of income. Yaakov willed his spouse $1.2 million. His taxable estate(before maritaldeduction) was comprised of thefollowing:
Gross estate
$8,500,000
Debts
(350,000)
Administration expenses
(125,000)
Funeral expenses
(16,000)
Charitable contribution to church
(150,000)
Assume Yaakov's will also provided for setting up a trust to be funded with $550,000 of property with a bank named as trustee. His wife is to receive all the trust income semiannually forlife, and upon her death the trust assets are to be distributed equally among Yaakov's children and grandchildren.
a.What was the amount of Yaakov's taxableestate? Provide two possible answers. (with & without any election)
With (Select one) Election Without Election
Gift Splitting
QTIP
Sec 6166
(Select One)
Adjusted taxable gifts
Gift taxes
Marital deduction
Taxable estate before marital deduction $________ $________
Minus: (select one)
Adjusted taxable gifts
Gift taxes
Marital deduction
Taxable estate before marital deduction $________ $________
Taxable Estate $________ $________
b. Assume Yaakov's widow died in December 2013. With respect to Yaakov's formerassets, which items will be included in thewidow's grossestate? Provide two possibleanswers, but you need not indicate amounts.
With Election $________
Without Election $ ________
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