Jack is single and made his first taxable gift of $1,000,000 in 2008. Jack made
ID: 2900353 • Letter: J
Question
Jack is single and made his first taxable gift of $1,000,000 in 2008. Jack made no further gifts until 2009, at which time he gave $1,750,000 to each of his three children and an additional $1,000,000 to State University (a charity). The annual exclusion in 2009 was $13,000. Recently Jack has been in poor health and would like you to estimate his estate tax should he die this year. Jack estimates hi taxable estate (after deductions) will be worth $5.4 million at his death.
Jack is single and made his first taxable gift of $1,000,000 in 2008. Jack made no further gifts until 2009, at which time he gave $1,750,000 to each of his three children and an additional $1,000,000 to State University (a charity). The annual exclusion in 2009 was $13,000. Recently Jack has been in poor health and would like you to estimate his estate tax should he die this year. Jack estimates hi taxable estate (after deductions) will be worth $5.4 million at his death.Explanation / Answer
Jack's previous gift taxes and donations amount to
1000000 + 3*1750000 + 1000000 = $6250000
According to question, Jack's taxable estate = $5.4 million
But unified credit = $5.4 + $6.25 + $13000 = $11,863,000
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