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Unformatted text preview: Less: charitable contributions under will or beneficiary designation Less: transfers to spouse = Taxable estate Plus: life-time taxable gifts (up to 1 million) Calculate tax (graduated rates up to 45%) Less: Applicable Credit Estate tax payable “Applicable Credit Amount” (fka Unified Credit) Each US person has a unified credit. It is equal to the tax that would be due on a taxable estate equal to the tax-free estate amount in a given year. Gifts Up to (currently) $12,000 can be given to any one individual in any one year. Amounts over $12,000 are taxable gifts – file a gift tax return. Some things are not subject to gift tax: Direct payment of educational costs Direct payment of medical costs Payments to spouse Charitable Contributions...
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This note was uploaded on 02/20/2009 for the course H ADM 422 taught by Professor Lhensley during the Fall '08 term at Cornell.
- Fall '08