Question

EXHIBIT 25-1 Unified Transfer Tax Rates* Not Over $10,000 20,000 Tax Base Equal to or Over $ 0 10,000 20,000 40,000 60,000 80,000 Plus 18% 20 22 of Amount Over $ 0 10,000 40,000 20,000 24 Tentative Tax $ 0 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70,800 155,800 248,300 345,800 40,000 60,000 80,000 100,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 100,000 150,000 150,000 250,000 1 34 250,000 500,000 37 500,000 750,000 39 750,000 1,000,000 1,000,000 40 *The applicable credit and exemption is zero for estates that opted out of the estate tax in 2010.

Answer 1

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Taxable Gift   $11,200,000
Less: Annual exclusion $14,000 per donee   -$28,000
Current taxable gifts   $11172,000
Prior Taxable Gifts   $0
Cumulative gifts   $11172000
less: Tax on cumulative gifts 40%   -$4468800
Less: current tax on prior taxable gifts   0
Tax on current taxable gifts   $6703200
unified tax credit   $5,430,000
Less: unified tax credit used previously   0
Unused unified credit   -$5,430,000
Gift tax due in 2015   $1273200
Alternative 1  
Taxable Gift   $1,000,000
Less: Annual exclusion $14,000 per donee   -$14,000
Current taxable gifts   $986,000
Prior Taxable Gifts   $0
Cumulative gifts   $986,000
less: Tax on cumulative gifts 40%   -$394,400
Less: current tax on prior taxable gifts   0
Tax on current taxable gifts   $591,600
unified tax credit   $5,430,000
Less: unified tax credit used previously   0
Unused unified credit   -$5,430,000
Remained unified credit   -$4,838,400
Alternative 2  
Taxable Gift   $15,600,000
Less: Annual exclusion $14,000 per donee   -$14,000
Current taxable gifts   $15586000
Prior Taxable Gifts   $0
Cumulative gifts   $15586000
less: Tax on cumulative gifts 40%   -$6234400
Less: current tax on prior taxable gifts   0
Tax on current taxable gifts   $9351600
unified tax credit   $5,430,000
Less: unified tax credit used previously   0
Unused unified credit   -$5,430,000
Remained unified credit   $3921600
Alternative 3  
Taxable Gift   $15,600,000
Less: Annual exclusion gift splitting $28,000 per donee   -$28,000
Current taxable gifts   $15572000
Prior Taxable Gifts   $0
Cumulative gifts   $15572000
less: Tax on cumulative gifts 40%   -$6228800
Less: current tax on prior taxable gifts   0
Tax on current taxable gifts   $9343200
unified tax credit   $5,430,000
Less: unified tax credit used previously   0
Unused unified credit   -$5,430,000
Remained unified credit   $3913200