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Calculate the diane gross estate

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Reference no: EM132745667

Question - Case Details for Estate Planning - Jack and Diane are both 65 years old and are married US citizens.

Jack has assets of $12,000,000 and Diane has assets of $3,000,000 for a total combined net worth of $15,000,000.

Jack dies in 2020 (age 65) and Diane dies in 2050 (age 95).

Neither has ever made any taxable gifts, neither is planning to give anything to charity, and Diane will not remarry.

Assume all assets increase in value by 5% per year (Diane lives off the excess after Jack passes).

No change to estate taxes or lifetime exemption.

Scenario:

A. Jack leaves everything to Diane and makes full use of Marital deduction. Diane elects DSUE (deceased spouses unused exclusion)

B. Jack's will creates a credit shelter trust at his death and directs that $11,580,000 of his assets goes into the trust with the remaining estate given directly to Diane

Required - Calculate for both scenario A and B:

A:

1. Diane's gross estate in 2050

2. Diane's taxable estate in 2050

3. The estate tax due in 2050

B:

1. Diane's gross estate in 2050

2. Diane's taxable estate in 2050

3. The estate tax due in 2050

Reference no: EM132745667

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