Use Worksheet 15.2 . When Jacob Kohler died unmarried in 2015, he left an estate
ID: 2794097 • Letter: U
Question
Use Worksheet 15.2. When Jacob Kohler died unmarried in 2015, he left an estate valued at $7,750,000. His trust directed distribution as follows: $19,000 to the local hospital, $150,000 to his alma mater, and the remainder to his three adult children. Death-related costs and expenses were $16,300 for funeral expenses, $50,000 paid to attorneys, $5,000 paid to accountants, and $30,000 paid to the trustee of his living trust. In addition, there were debts of $165,000. 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.
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Explanation / Answer
Distributions to Local Hospital and Alma mater are not eligible for deductions.
Particulars Amount $ Gross Estate Value 7,750,000 Less: Death related costs and expenses (16,300) Less: Administrative Expenses Paid to Attorneys (50,000) Paid to Accountants (5,000) Paid to Trustee (30,000) Less: Debts (165,000) Net Estate Value 7,483,700 Less: Exempted Value for 2015 (5,430,000) Taxable Estate Value 2,053,700 Federal Tax Rate for 2015 40% Federal Estate Tax due (2053700 * 40%) 821,480Related Questions
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