When Yuji died in March 2013, his gross estate was valued at $8 million.

When Yuji died in March 2013​, his gross estate was valued at $8 million. The marginal estate tax rate exceeded his​ estate’s marginal income tax rate because the estate collected only about $8,000 of income. Yuji willed his spouse $1.1million. His taxable estate​ (before marital​ deduction) was comprised of the​ following:

Gross estate

$8,000,000

Debts

(300,000)

Administration expenses

(120,000)

Funeral expenses

(12,000)

Charitable contribution to church

(300,000)

Assume Yuji​’s will also provided for setting up a trust to be funded with $400,000 of property with a bank named as trustee. His wife is to receive all the trust income semiannually for​ life, and upon her death the trust assets are to be distributed equally among Yuji​’s children and grandchildren.

a.    What was the amount of Yuji​’s taxable​ estate? Provide two possible answers.

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 Yuji​’s widow died in December 2013. With respect to Yuji​’s former​ assets, which items will be included in the​ widow’s gross​ estate? Provide two possible​ answers, but you need not indicate amounts.

With Election $ ________

Without Election$ ________ 

 

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"