How much federal estate tax will be due at frick death

Assignment Help Finance Basics

Reference no: EM133368524

Question: Married couple Frick and Frack have the following assets:

Frick - $5,000,000 in mutual funds, $5,000,000 in real estate, and $5,000,000 (appraised value) in a family-owned business #1

Frack - $5,000,000 in mutual funds, $5,000,000 in real estate, and $5,000,000 (appraised value) in a different family-owned business #2

Joint - $5,000,000 in a personal residence and some miscellaneous property such as cars, boats, aircraft, etc.

Total assets: $35,000,000

- They have three adult children. One child works at business #1 and another at business #2. The third child does not participate in the businesses.

- They both have wills that leave 1/2 of their individual estates to each other, and the other 1/2 to their children in equal shares.

- For the past 10 years, both of them have made annual gifts of $20,000 to each of the three children.

- Assume that Frick dies today, and Frack dies 18 months later.

- Assume that at each death, there are $50,000 in deductible expenses.

- Assume that at each death, there are $100,000 in qualified charitable gifts.

Assignment:

- 1. How much Pennsylvania inheritance tax will be due at Frick's death? How much at Frack's death?

- 2. How much federal estate tax will be due at Frick's death? How much at Frack's death

- Be sure to show your work!

Reference no: EM133368524

Questions Cloud

Experimenting with performance-enhancing drugs : In the late 1980s and early 1990s, major league baseball players started experimenting with performance-enhancing drugs

What were the values of middle class : What were the values of the middle class? How did they differ from the values of those above and below them on the socioeconomic ladder?

What determines what is allowed or not to circulate : What determines what is allowed or not to circulate? Why does it matter to ensure transparency in agencies responsible for films' ratings?

Discuss the relationship between finance and accounting : Discuss the relationship between "Finance" and "Accounting" (also includes Financial & Managerial Accountings), (24%)

How much federal estate tax will be due at frick death : How much Pennsylvania inheritance tax will be due at Frick's death? How much at Frack's death? How much federal estate tax will be due at Frick's death?

How did the Soviets jumpstart space race : How did Joseph McCarthy fuel another red scare? Did his hearings produce any real results? How did the Soviets jumpstart the space race?

How many business segments does the company have : How many business segments does the company have? If the company has many different business segments, should all business segments apply the same cost

What was the effective annualized return on your investment : What was the yield to maturity on that day? Use the ask price to compute the YTM and state your answer as an APR. What was the effective annualized return

How did installment of the sarbanes-oxley act most impact : Very briefly summarize the key requirements of the Sarbanes-Oxley Act for firm managers. In your opinion, how did the installment of the Sarbanes-Oxley act most

User Account

All Pages