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6 September, 06:52

Alice died during the current year with an estate of $3 million. Two years ago, she gifted $2 million (taxable gift) to her children and paid $435,000 of gift taxes and $500,000 of GSTT. What is the amount of her taxable estate?

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  1. 6 September, 07:22
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    taxable gift is not in the gross estate or taxable estate

    Explanation:

    given data

    estate = $3 million

    time = 2 year

    taxable gift = $2 million

    paid = $435,000

    solution

    as we know that gift tax paid will brought back in gross estate but not the GSTT

    and gross up rule is limit for federal gift tax only

    as It is only after taxable estate and taxable gift is add back to get tentative tax base

    so as taxable gift is not in the gross estate or taxable estate
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