When Dante Perimutter died in 2012, he left an estate valued at $15,000,000. His

Question

When Dante Perimutter died in 2012, he left an estate valued at $15,000,000. His trust directed distribution as follows: 300,000 in charitable deductions ($50,000 to the local hospital plus $250,000 to his alma mater), and the remainder to his four adult children. Death-related costs were $8,500 for funeral expenses, and $125,000 in administrative expenses ($60,000 paid to attorneys, $15,000 paid to accountants, and $50,000 paid to the trustee of his living trust. In addition, there were debts of Use the following worksheet and Exhibits 15.7 and 15.8 to calculate the federal estate tax due on Dante Perimutter's estate. Enter a value of $O for any line that does not apply Computing Federal Estate Tax Due Name: Dante Perlmutter Date: 11/30/2012 Item Total Amount Gross estate Subtract sum of:(a)Funeral expenses expenses (c) Debts (d) Other expenses Total: Adjusted gross estate (a) Marital deduction Result: Subtract sum of: Total: Result: Add Result: Taxable estate Adjusted taxable gifts (post-1976) Estate tax base Tentative tax on estate tax base (a) Gi (b) Unified tax credit 7 sum of: ft tax payable on post-1976 gifts Total: Result: Total estate taxes Other credits Federal estate tax due 12 Use Exhilbit 15.7 to calculste the tentative tax Use Exhibit 15.8 to determine the appropriabe unified tax credit. Result: Exhibit 15.7- Federal Unified Transfer Tax Rates Taxable Estate Value Tentative Tax More Than But Not More Than Base Amount + Percent On Excess Over 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 20,000 40,000 20% $10,000 8,200 13,000 18,200 23,800 38,800 70,800 155,800 40,000 60,000 80,000 100,000 150,000 250,000 00,000 24% 80,000 100,000 150,000 250,000 500,000 26% 30% 34% 37% Exhibit 15.8-Unified Credts and Applicable Exdusion Amounts for Estates and GiftsX Unified Tax Unified Tax Credit-Estates Applicable Exclusion Amount-Estates Applicable Exclusion Amount-Gifts Year 2006 2007 2008 2009 2010 $780,800 $780,800 $780,800 $1,455,800 Estate tax repealed for 2010 $1,730,800 1,772,800 $2,045,800 $2,000,000 $2,000,000 $2,000,00D 53,500,000 $345,800 $345,800 $345,800 $345,800 $330,800 $1,730,800 1,772,800 $2,045,800 $1,000,000 $1,000,000 1,000,000 1,000,000 $1,000,000 $5,000,000 5,120,000 $5,250,000 $5,000,000 $5,120,00D 55,250,000 2013

Explanation / Answer

Computing Federal estate tax due

Name: Dante Perlmutter . Date 11/30/2012

Line Computation Item Amount Total Amount 1 Gross estate $15,000,000 2 substact the sum of a. Funeral expenses $8,500 b. Administrative expenses $125,000 c. Debt $650,000 e. Other expenses $0 Total ($783,500) 3 Result Adjusted gross estate $14,216,500 4 Substract the sum of a. Marital deduction $0 b. Charitable deduction $300,000 Total ($300,000) 5 Result Taxable estate $13,916,500 6 Addition: Adjusted taxable gift $0 7 Result Estate tax base $13,916,500 8 Compute Tentative tax on estate base $5,119,905 9 Substract the sum of a. Gift tax $0 b. Unified tax credit $1,772,800 Total ($1,772,800) 10 Result Total estate tax $3,347,105 11 Substract Othe Credit $0 12 Result Federal tax due $3,347,105

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