Lou dies on April 12,2011.All of Lou's property passed to Paula,his daughter.Paula dies on January 15,2013.Both Lou's and Paula's estates pay federal estate taxes.Lou's estate tax was $350,000.How much can Paula's estate claim for a credit for tax on prior transfers?

Question

Quizplus · Accepted Answer

The credit for tax on prior transfers is equal to the amount of estate tax paid by the prior decedent's estate. In this case, Lou's estate paid $350,000 in estate tax, so Paula's estate can claim a credit for tax on prior transfers in the amount of $350,000.

Lou Dies on April 12,2011