McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 29

Jack made his first taxable gift of $1,000,000 in 1997, at which time the unified credit was $192,800.Jack made no further gifts until 2005, at which time he gave $250,000 each to his three children and an additional $100,000 to State University (a charity).The annual exclusion in 2005 was $11,000.Recently Jack has been in poor health and would like you to estimate his estate tax should he die this year.He estimates his taxable estate (after deductions) will be worth $5. million at his death.Assume Jack is single, has paid the proper amounts of tax in past years, and use the 2011 rate schedule and unified credit.