Reference no: EM131925149

Use Worksheet 15.2. When Jacob Kohler died unmarried in 2015, he left an estate valued at $8,400,000. His trust directed distribution as follows: $18,000 to the local hospital, $170,000 to his alma mater, and the remainder to his three adult children. Death-related costs and expenses were $16,900 for funeral expenses, $45,000 paid to attorneys, $7,000 paid to accountants, and $30,000 paid to the trustee of his living trust. In addition, there were debts of $150,000. Use Worksheet 15.2 and Exhibit 15.7 and Exhibit 15.8 to calculate the federal estate tax due on his estate. Round your answer to nearest whole dollar. COMPUTING FEDERAL ESTATE TAX DUE Name Date Line Computation Item Amount Total Amount 1 Gross estate $ 2 Subtract sum of: (a) Funeral expenses $ (b) Administrative expenses (c) Debts (d) Other expenses Total ( - ) 3 Result: Adjusted gross estate $- 4 Subtract sum of: (a) Marital deduction (b) Charitable deduction Total ( - ) 5 Result: Taxable estate $- 6 Add: Adjusted taxable gifts (post-1976) $ 7 Result: Estate tax base $- 8 Compute: Tentative tax on estate tax basea $ 9 Subtract sum of: (a) Gift tax payable on $ post-1976 gifts (b) Unified tax creditb Total ($ - ) 10 Result: Total estate taxesc - 11 Subtract: Other credits ($ ) 12 Result: Federal estate tax due $- a. Use Exhibit 15.7 to calculate the tentative tax. b. Use Exhibit 15.8 to determine the appropriate unified credit. c. Note that the amount shown on line 7 is a significant number, because most states use the same estate tax base as is used for the federal tax