Tom Hruise was an entertainment executive who had a fatal accident on a film set. Tom's will directed his executor to distribute his cash and stock to his wife, Kaffie, the real estate to his church, The First Church of Methodology, and the remainder of his assets were to be placed in trust for his three children. Tom's estate consisted of the following:
Assets:
Personal assets.............................................$ 800,000
Cash and stock...........................................24,000,000
Intangible assets (film rights)...........................71,500,000
Real estate................................................15,000,000
..........................................................$111,300,000
Liabilities:
Mortgage.................................................$ 3,200,000
Other liabilities.............................................4,100,000
.............................................................$ 7,300,000
a) Tom made a taxable gift of $8 million in 2011. Compute the estate tax for Tom's estate.
b) Fill out lines 1 through 12 in part 2 of Form 706 for Tom's estate.