Harold and Maude were married and lived in a common-law state. Maude died in 2018 with a taxable estate of $25.80 million and left it all to Harold. Maude's executor filed a timely estate tax return claiming the marital deduction for the property left to Harold including a valid portability election. Harold died this year, leaving the entire $25.80 million to their three children. Calculate how much estate tax is due from Harold's estate under the following two alternatives: A. Assume that neither Harold nor Maude had made any taxable gifts prior to this year. B. Assume that Harold and Maude each made a $1 million taxable gift in 2011 and offset the gift tax at that time with the applicable credit.
Harold and Maude were married and lived in a common-law state. Maude died in 2018 with a taxable estate of $25.80 million and left it all to Harold. Maude's executor filed a timely estate tax return claiming the marital deduction for the property left to Harold including a valid portability election. Harold died this year, leaving the entire $25.80 million to their three children. Calculate how much estate tax is due from Harold's estate under the following two alternatives: A. Assume that neither Harold nor Maude had made any taxable gifts prior to this year. B. Assume that Harold and Maude each made a $1 million taxable gift in 2011 and offset the gift tax at that time with the applicable credit.
Chapter27: The Federal Gift And Estate Taxes
Section: Chapter Questions
Problem 28CE
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Transcribed Image Text:Harold and Maude were married and lived in a common-law state. Maude died in 2018 with a taxable
estate of $25.80 million and left it all to Harold. Maude's executor filed a timely estate tax return
claiming the marital deduction for the property left to Harold including a valid portability election.
Harold died this year, leaving the entire $25.80 million to their three children.
Calculate how much estate tax is due from Harold's estate under the following two alternatives:
A. Assume that neither Harold nor Maude had made any taxable gifts prior to this year.
B. Assume that Harold and Maude each made a $1 million taxable gift in 2011 and offset the gift tax at
that time with the applicable credit.
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