Jane and John Williams: Assume the following estate planning information for Jane and her spouse John.

Client Spouse Joint

Jane John

Assets $16,300,000 $9,200,000 $4,500,000

Debts 1,000,000

Funeral 120,000 120,000

Estate Adminstration

200,000 200,000

Charitable Contribution

400,000 400,000

Marital Plan A/B A/B

 

Assume exclusion amount of $11,200,000

 

a.If Jane were to pass away first, what is her tax liability before the marital deduction?

b.If John were to pass away first, what is his tax liability before the marital deduction?

c.Using the portable estate exemption, how much of their combined estate is taxable today?

d.If Jane and John fail to take advantage of the portable estate exemption by forgetting to file IRS Form 706 at the death of the first spouse, will there be a tax liability this year, assuming the second spouse also passes shortly thereafter? Describe an estate planning strategy that can be used to minimize any estate tax liability in this situation.

Answer rating: 100% (QA)

a The taxable estate of Jane will be calculated as follows Total assets 16300000 9200000 4500000 30000000 Total debts 1000000 Funeral expenses 120000 ... View the full answer