Married couple Frick and Frack have the following assets:

Frick - $5,000,000 in mutual funds, $5,000,000 in real estate, and $5,000,000 (appraised value) in a family-owned business #1

Frack - $5,000,000 in mutual funds, $5,000,000 in real estate, and $5,000,000 (appraised value) in a different family-owned business #2

Joint - $5,000,000 in a personal residence and some miscellaneous property such as cars, boats, aircraft, etc.

Total assets: $35,000,000

- They have three adult children. One child works at business #1 and another at business #2. The third child does not participate in the businesses.

- They both have wills that leave 1/2 of their individual estates to each other, and the other 1/2 to their children in equal shares.

- For the past 10 years, both of them have made annual gifts of $20,000 to each of the three children.

- Assume that Frick dies today, and Frack dies 18 months later.

- Assume that at each death, there are $50,000 in deductible expenses.

- Assume that at each death, there are $100,000 in qualified charitable gifts.

- 1. How much Pennsylvania inheritance tax will be due at Frick's death? How much at Frack's death?

- 2. How much federal estate tax will be due at Frick's death? How much at Frack's death?

Answer rating: 100% (QA)

1 Pennsylvania Inheritance Tax at Fricks Death Taxable estate 25000000 Fricks 5000000 ... View the full answer