Assignment: Chapter 15 Preserving Your Estate 8. Computing the federal transfer tax - Practice 1 When Yakov Tokarev 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 $650,000. Exhibit 15.7 - Unified Credits and Applicable Exclusion Amounts for Estates and Gifts: Source: Internal Revenue Service. Exhibit 15.7 - Unified Credits and Applicable Exclusion Amounts for Estates and Gifts: Source: Internal Revenue Code, Section 2001. Assignment: Chapter 15 Presenving Your Estate apply. Use Exhibit 15.7 to calculate the tentative tax. Use Exhibit 15.8 to determine the appropriate unified tax credit.)