Right before his death from a terminal illness, Shing makes a gift of $890,000 cash that he had planned to bequeath to the church anyway. Presuming Shing had a marginal Federal income tax rate of 35% and his Federal estate tax bracket is 40%, what is the tax effect of his lifetime transfer. Ignore the 20%/30%/50%/60% contribution limitations. If an amount is zero, enter "0". If gifted during his lifetime, Shing will save $ in income taxes. If made as a bequest from his estate, the estate will save in estate taxes.
Right before his death from a terminal illness, Shing makes a gift of $890,000 cash that he had planned to bequeath to the church anyway. Presuming Shing had a marginal Federal income tax rate of 35% and his Federal estate tax bracket is 40%, what is the tax effect of his lifetime transfer. Ignore the 20%/30%/50%/60% contribution limitations. If an amount is zero, enter "0". If gifted during his lifetime, Shing will save $ in income taxes. If made as a bequest from his estate, the estate will save in estate taxes.
Chapter19: Family Tax Planning
Section: Chapter Questions
Problem 25CE
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Transcribed Image Text:Right before his death from a terminal illness, Shing makes a gift of $890,000 cash that he had planned to bequeath to the church anyway.
Presuming Shing had a marginal Federal income tax rate of 35% and his Federal estate tax bracket is 40%, what is the tax effect of his
lifetime transfer.
Ignore the 20%/30%/50%/60% contribution limitations.
If an amount is zero, enter "0",
If gifted during his lifetime, Shing will save $
in income taxes. If made as a bequest from his estate, the estate will save
in estate taxes.
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