total probate estate marketable securities less debts expenses taxes due total proba 285475

2444000 1222000 10000 1212000 0 1212000 1212000 1000000 212000 86920 345800 432720 345800 86920 100 4048390 29000 97000 4174490 100 100 4174390 2087195 2087195 4174390 Total Probate Estate Marketable Securities LESS: DEBTS, EXPENSES, TAXES DUE TOTAL PROBATE ESTATE TOTAL RESIDUAL ESTATE Distribution = 50% to Boy Kid Leonard Distribution = 50% to Girl Kid Leonard TOTAL DISTRIBUTION OF RESIDUAL ESTATE State Death Taxes = Actual Amount Paid Federal Estate Taxes = Actual Amount Paid Less: Debts, Expenses & Applicable Taxes Per Form 706 Schedule A Schedule B Schedule C Schedule F Schedule J Schedule K Schedule O Real Esate Cash Personal Effects Funeral & Admin Expenses Debts 706 Page2 L.5 Amount Probate Estate & Residual Estate: FMV of gifts made in current year Amount of gift allocable to Margaret Plus: All taxable gifts made in prior years Taxable gift transfers to date ÷ 2 Citation IRC §2512(a) IRC §2511(a) Tentative Gift Tax Credit 2004 was $21,572 … thus a $21,572 dollar for dollar reduction in tax liability Note: Tax law changed from 2004 to 2005 re State Death Taxes FROM a tax credit TO a tax deduction on Form 706 x 41% Rubric Item #12(a) Power of Appointment General or Specific Rubric Item #12(b) Margaret’s Own Interest in Father’s Trust Removed in Spring 2011 as a Rubric Item BUT State Death Tax Explanation &/or Calc DEFINITIONS: PROBATE ESTATE = those assets to be distributed under the will. JTWROS assets do NOT go through Probate Estate, but pass automatically outside of probate & “by operation of law.” RESIDUAL ESTATE = remainder of Probate Estate AFTER payment of all bequests, debts, expenses, estate taxes (both state & federal taxes). 2005 Form 709: Gift Tax Formula Margaret Heinz #123 45 6789 & Date of Gift 7/4/2005 Less: Apply spousal gift splitting election Less: Annual exclusion of $??K x 2 donees Equals: Taxable gifts for 2005 = current year Taxable gift transfers to date … as of…