[SOLVED] Use Worksheet 15.2. When Jacob Kohler

Use Worksheet 15.2. When Jacob Kohler died unmarried in 2015 he left an estate valued at $7,850,000. His trust directed distribution as follows: $20,000 to local hospital, $160,000 to his alma mater, and the remainder to his three adult children. Death-related costs and expenses were $16,800 for funeral expenses, $40,000 paid to attorneys, $5,000 paid to accountants, and $30,000 paid to the trustee of his living trust. In addition, there were debts of $125,000. Use Worksheet 15.2 and Exhibits 15.7 and 15.8 to calculate the federal estate tax due on his estate. Worksheet 15.2:

Exhibits 15.7:

Exhibits 15.8:

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COMPUTING FEDERAL ESTATE TAX DUE Name Peyton Naylor Date_9/5/2015 Line Computation Item Amount Total Amount 1 Gross estate 7,850,000 (a) Funeral expenses (b) Administrative expenses (c) Debts 2 Subtract sum of: 6,800 75,000 125,000 (d) Other expenses Total 206,800) 3 Result: $ 7,643,200 Adjusted gross estate (a) Marital deduction 4 Subtract sum of: (b) Charitable deduction 180,000 Total 180,000) 5 Result: Taxable estate $ 7,463,20O 6 Add: 7 Result: 8 Compute: 9 Subtract sum of: Adjusted taxable gifts (post-1976) Estate tax base 7:463,200 2,931,080 Tentative tax on estate tax base (a) Gift tax payable on post-1976 gifts $. (b) Unified tax creditb 2,117,800 Total 2,117,800 10 Result: Total estate taxes® 813,280 10 Subtract: Other credits (24 12 Result: Federal estate tax due 2$ 813,280 TAXABLE ESTATE VALUE TENTATIVE TAX More Than But Not More Than Base Amount + Percent On Excess Over $ 0 $ 10,000 2$ 18% 10,000 20,000 1,800 20% $ 10,000 20,000 40,000 3,800 22 20,000 40,000 60,000 8,200 24 40,000 60,000 80,000 13,000 26 60,000 80,000 100,000 18,200 28 80,000 100,000 150,000 23,800 30 100,000 150,000 250,000 38,800 32 150,000 250,000 500,000 70,800 34 250,000 500,000 750,000 155,800 37 500,000 750,000 1,000,000 248,300 39 750,000 1,000,000 345,800 40 1,000,000 Year Unified Tax Applicable Exclusion Amount-Estates Unified Tax Applicable Exclusion Amount-Gifts Credit-Estates Credit-Gifts 2006 $780,800 $2,000,000 $345,800 $1,000,000 2007 $780,800 $2,000,000 $345,800 $1,000,000 2008 $780,800 $2,000,000 $345,800 $1,000,000 2009 $1,455,800 $3,500,000 $345,800 $1,000,000 2010 Estate tax repealed for 2010 $330,800 $1,000,000 2011 $1,730,800 $5,000,000 $1,730,800 $5,000,000 2012 $1,772,800 $5,120,000 $1,772,800 $5,120,000 2013 $2,045,800 $5,250,000 $2,045,800 $5,250,000 2014 $2,081,800 $5,340,000 $2,081,800 $5,340,000 2015 $2,117,800 $5,430,000 $2,117,800 $5,430,000

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Question: Use Worksheet 15.2. When Jacob Kohler

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