Answer the following:
Calculating gift tax. Barry and his wife Mary have accumulated over $4 million during their 45 years of marriage. They have three children and five grandchildren.
How much money can Barry and Mary gift to their children in 2014 without any gift tax liability?
How much money can Barry and Mary gift to their grandchildren?
What is the total amount of estate removed from Barry and Marys estate?
Calculating the Estate Tax. Joel and Rachel are both retired. Married for 50 years, theyve amassed an estate worth $2.4 million. The couple has no trusts or other types of tax-sheltered assets. If Joel or Rachel dies in 2014, how much federal estate tax would the surviving spouse have to pay, assuming that the estate is taxed at a 45 percent rate?