B. Estate Taxes
- Rajinder passed away, leaving an estate worth a total of $839,075. His will left $150,000 to various charities, and
the rest of his estate to his children. He had no debts, his funeral expenses amounted to $19,700, and the estate
administrative expenses totaled $42,000. Calculate his taxable estate. - A farmer passed away leaving a farm worth $2,500,000 in total. His other assets amounted to $74,500 and he had
$240,000 in debt. His funeral expenses and estate administrative expenses totaled $54,000.
a. Calculate his taxable estate.
b. Determine the federal estate tax on this estate, assuming he died in 2003.
c. Determine the federal estate tax on this estate, assuming he died in 2008.- Determine (a) the taxable estate and (b) the federal estate tax owed, given:
The overall value of the estate is $5,743,025.
The deceased’s will left $100,000 to charity and $2,000,000 to his spouse.
Funeral expenses were $31,535 and estate administration expenses were $184,000.
Death occurred in 2009.
- Suppose that someone dies, leaving an estate of $4,546,902. His will leaves $300,000 to charity, with the rest passing
on to his children and grandchildren. Funeral and administrative expenses total $195,000. Calculate the amount of the
federal estate tax if this death were to occur in (a) 2008, (b) 2009, and (b) 2010. - Mike’s father died in 2004, leaving an estate worth $172,405 in total. Calculate the estate tax on his father’s
estate. - Lisa’s grandfather dies in 2006. His taxable estate was worth $582,043. How much federal estate tax would be paid on
this estate? - Ken gave each of his four grandchildren $100,000. How much of this gift is potentially subject to gift tax?
- Jarron and Lucy gave each of their three children $30,000, and each of their four grandchildren $25,000. They also
gave $50,000 to their church. How much of this gift is potentially subject to gift tax? - Nguyen has a large investment account and wants to give as much of it as possible to his family this year. He plans to
make gifts to his three children and fi ve grandchildren. How much in total can he give away without exceeding the gift
tax limit? - Under the 2007 estate tax rates, who would pay the most estate taxes?
a. Someone who dies leaving a taxable estate of $1,750,000.
b. Someone who dies leaving a taxable estate of $500,000.412 Chapter 9 Taxes