Pursuant to Corey’s will, Emma (Corey’s sister) inherits his property. Emma dies later. The estate tax attributable to the inclusion of the property in Corey’s gross estate was $300,000. The estate tax attributable to the inclusion of the property in Emma’s gross estate is $400,000. Emma’s credit for the tax on prior transfers (under § 2013) is:

a. $0 if Emma died 9 1/2 years after Corey.

b. $32,000 if Emma died 3 years after Corey.

c. $40,000 if Emma died 1 year after Corey.

d. $24,000 if Emma died 5 1/2 years after Corey.

e. None of the above amounts is correct.

Answer rating: 100% (QA)

Answer 2020131 Credit for tax on earlier exchanges As per section 2013 a credit is allowed as provi... View the full answer