8. Computing the federal transfer tax - Practice 1 Aa Aa When Orville Kingshill died in 2012, he left an estate valued at $25,000,000. His trust directed distribution as follows: $400,000 in chanitable deductions ($75,000 to the local hospital plus $325,000 to his alma mater), and the remainder to his four adult children. Death-related costs were s9,500 for funeral expenses, and $150,000 in administrative expenses ($70,000 paid to attorneys, $20,oo0 paid to accountants, and $60,000 paid to the trustee of his living trust. In addition, there were debts of $850,000 g worksheet and Exhibits 15.7 and 15.8 to calculate the federal estate tax due on orville Kingshill's estate. Enter a value of so for any line that does not apply Computing Federal Estate Tax Due Name: Orville Kingshill Line Computation Date: 11/30/2012 Item Gross estate (a) Funeral expenses (b) Administrative expenses (c) Debts (d) Other expenses Amount Total Amount Subtract sum of: Total: 3 Result: Adjusted gross estate Subtract sum of: (a) Marital deduction (b) Charitable deduction Total Result: Add Taxable estate Adjusted taxable gifts (post-1976) Fstate tax base 6 12 Result: Federal estate tax due se Exhibit 15.7 to calculate the tentative tax. buse Exhibit 15.8 to determine the appropriate unified tax cred t. Use the folowing dropdown menus to obtain the relevant tax schedules and credits Exhibit 15.7 - Federal unified Transfer Tax Rates Taxable Estate Value Tentative Tax More Than 50 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 But Not More Than 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 Base Amount $0 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70,800 155,800 +Percent on Excess Over 20% 22% 24% 26% 28% 30% 32% 34% 37% $10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 12 Result: Federal estate tax due Use Exhibit 15.7 to calculate the tentative tax. Use Exhibit 15.8 to determine the appropriate unified tax credit. Use the following dropdown menus to obtain the relevant tax schedules and credits: Exhibit 15.8 -Unified Credits and Applicable Exclusion Amounts for Estates and Gifts X Unified Tax Credit-Estates Applicable Exclusion Amount-Estates Unified Tax Credit-Gifts Applicable Exclusion Amount-Gifts Year 2006 2007 2008 2009 2010 2011 2012 2013 $780,800 $780,800 $780,800 $1,455,800 Estate tax repealed for 2010 $1,730,800 $1,772,800 $2,045,800 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $5,000,000 $5,120,000 $5,250,000 $2,000,000 $2,000,000 $2,000,000 $3,500,000 $345,800 $345,800 $345,800 $345,800 $330,800 $1,730,800 $1,772,800 $2,045,800 $5,000,000 $5,120,000 $5,250,000