Question

Harold and Maude are married and live in a common-law state. Neither has made any taxable gifts and Maude owns (holds title to) all their property. She dies with a taxable estate of $25 million and leaves it all to Harold. He dies several years later, leaving the entire $25 million to their three children. (Refer to Exhibit 25-1 and Exhibit 25-2.)

Answer 1

Answer:

estate tax  due of Harold and Maude = $5,440,000

Explanation:

Taxable estate and cumulative transfers = $ 25,000,000

Tax on cumulative transfers = $9,945,800

   =24000000*40%+345800

Unified credit - 2019 = $4,505,800

Estate Tax Due = $5,440,000

Gross Estate = $ 25,000,000

Exclusion = $ 11,400,000

Taxable Amount = $ 13,600,000

Effective Tax Rate = 40%

Estate Tax Due = $5,440,000