Decedent died in 2015 with an estate valued at 20,000,000. Decedent had made (pr

Question

Decedent died in 2015 with an estate valued at 20,000,000. Decedent had made (pre-2011) taxable gifts that totaled $3,500,000. At the time of Decedent's death, his Widow owned property worth $4,000,000. Decedent had an ABC Trust Estate Plan. Determine the amount at which each trust will be funded. 1) The A Trust will be funded with - pl choose A-F below? 2) Trust B will be funded with - please choose from A-F below? 3) Trust C will be funded with - please choose from A-F below? A. $4,430,000 B. $5,430,000 c. $19,750,000 D. $15,570,000 E. $14,570,000 F.None of the other answers is correct G. $4,000,000

Explanation / Answer

Since it's an ABC trust system and we know that the estate of deceased is 20000000,we conclude the following.

Gifts given to spouse are not taxable so $3500000 will not be included in deceased estate.

Trust A -option E (20000000-5430000)

5430000 is the federal estate tax exemption.in ABC trust system we also have a separate state estate tax which in 2015 was $4000000

Trust B -option F as it will have $1430000

Trust V -option G 4000000 $

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