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Question 11: Assuming no prior gifts, Alan can gift a cumulative total of (not including the annual exclusion)
$1.5 million to his grandchildren without the imposition of the GSTT.
A. Both 1 and 2
B. 1 only
C. Neither 1 nor 2
D. 2 only
Correct Answer: D
2. A married man died this year leaving a gross estate of $2,700,000. Some additional facts
concerning his estate are:
*Administration expenses and debts $300,000
*Marital deduction 800,000
*Applicable credit amount (2005) 555,800
*Applicable exclusion amount (2005) 1,500,000
*State death taxes payable 17,700
Under the Unified Rate Schedule for computing estate taxes if the amount with respect to which the
tentative tax to be computed is over $1,000,000 but not over $1,250,000, the tentative tax is
$345,800, plus 41 percent of the excess of such amount over $1,000,000. If the amount is over
$1,250,000 but not over $1,500,000, the tentative tax is then $448,300, plus 43 percent of the excess
of such amount over $1,250,000. If the amount is over $1,500,000 but not over $2,000,000 the
tentative tax is then $555,800 plus 45% of the excess of such amount over $1,500,000. Based on
these facts, the net federal tax payable is
A. $42,865
B. 0
C. $47,065
D. $37,035
Correct Answer: D
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