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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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- Fall '08