Faye made taxable gifts of cash equal to $350,000 in 1975, $450,000 in 1978, and $150,000 early in 1998.Faye dies late in 2009 leaving a taxable estate of $700,000.In applying the unified tax rate schedules (for estate tax purposes), the executor must first determine the tax on:

Question

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The unified tax rate schedules combine the gift and estate taxes into a single tax on the cumulative lifetime and deathtime transfers of an individual. The executor must first determine the tax on the cumulative taxable transfers, which is the sum of the taxable gifts made during the individual's lifetime and the value of the taxable estate at death. In this case, the cumulative taxable transfers are $700,000 (taxable estate) + $350,000 (taxable gift in 1975) + $450,000 (taxable gift in 1978) + $150,000 (taxable gift in 1998) = $1,650,000.

Faye Made Taxable Gifts of Cash Equal to $350,000 in 1975