Question

Continuing Case 69. Estate Tax Estimate Jamie Lee and Ross are in their late fifties and enjoying planning for their next phase in life: retirement! The triplets are finishing their college educations and will be starting careers of their own in no time at all. As they prepare their children for the next chapter in their lives, Jamie Lee and Ross emphasize the importance of preparing for the future and drawing on their own experiences when offering advice to the three. They have always been candid with their children and have included them in most of their financial decisions over the years, hoping that their focus on saving for the future will also become a way of life for their children. Jamie Lee and Ross have also included their children in their estate planning, realizing that they are an important part of the entire asset management process. Preparation is key, they all understand, as you never can predict what lies in the future. Lately, Jamie Lee and Ross have been hearing many stories about acquaintances who have passed away without leaving a will or a plan for their estate, which made Jamie Lee and Ross anxious to review their own estate plan with an attorney. They do not want to think about eventually passing on, but they know it is an essential, as well as an inevitable, part to careful financial planning. As part of their estate planning, Jamie Lee and Ross need to calculate a scenario to determine the amount of tax, if any, that will be imposed on the estate when it is passed to their three children. In the scenario, they assume their mortgage is paid in full and one spouse has died with the surviving spouse receiving all of the assets under the unlimited marital deduction. They estimate that funeral and medical expenses for the surviving spouse will be $18,000. The real estate they own will have to be re-titled to the children and will need to go through probate at a cost of 5% of its value. Jamie Lee and Ross have not made any taxable gifts in their lifetimes. Assume the estate can utilize the unified tax credit for both spouses using 2017 amount ($5.49 million per individual). Use the information below to calculate their net estate tax. Each answer must have a value for the assignment to be complete. Enter "O" for any unused categories.

Answer 1

Estate Tax Estimation For Mr.Jamie Lee and Ross
	Gross Assests Values			$
	Personal Property			122300
	Real Estate			489000
	Joint Ownership			820000
	Business Interests			1140000
	Life Insurance			139000
	Employee Benefits			106000
	Controlled Gits/Trust			0
	Prior Taxable Gifts			0
	Other Assets			42500
	Total Assets Value			2858800
	Detuctable Debts, Costs and Expenses
	Mortgage and Secured Loans			0		As per information there are no loans outstanding on that date
	Unsecured Notes			0
	Bills and Accounts Payable			0
	Funeral And Medical Expenses			18000
	Probate administrations Costs			24450
	Total Deducations			42450
	Martial Deducation			0
	Taxable Estate			2816350
	Allowable Credits
	Unified tax credit			0
	Gift Tax Credit			0
	State Tax Credit			0
	Foreign Tax Credit			0
	Prior Tax Credit			0
	Total Tax Credit			0
	Taxable value of Estate			2816350
	Net Estate Tax			0		Since the value is less than allowable limit for the year 2017 which is 5.49 million. NIL Tax