Interest on a Certain Portion of the Estate Tax Payable
In that event, the remainder interest may revert back to the grantor and be included in his or her taxable estate.1 Since gift tax may have been paid when the GRAT was established (or a substantial amount of the lifetime gift exemption was used), the amount of the tax paid is credited against estate tax payable
. Consequently, the fundamental risk borne by the grantor is the time value of money unrealized by making the "failed" gift.
Prior to EGTRRA, Florida imposed a "pick-up estate tax," such that the estate tax payable
to Florida was equal to the state death tax credit.
The estate tax payable
is $1,575,000 ($3,030,800 tentative tax - $1,455,800 unified credit).
Corporate-owned key employee life insurance may have some effect on the federal estate tax payable
by the deceased key employee's estate.
If the parents simply gave or transferred the family wealth on death to their US-resident children, there would be estate tax payable
when the children die.
(4) The federal estate tax payable
before credits (or tentative tax) is determined as follows: (a) the tentative tax base (or contribution base) is calculated by adding to the taxable estate any "adjusted taxable gifts" (essentially, this means the taxable portion of post-1976 gifts that were not already included in the decedent's gross estate); (b) the tax rate schedule is then applied to determine the tentative tax; (c) the aggregate amount of gift tax which would have been payable with respect to gifts made by the decedent after 1976 if the tax rate schedule (IRC Sec.
The applicable portion of the estate tax payable
in installments and subject to the Sec.
For example, if a participant were to die with a $1 million IRA, the federal and state estate tax payable
with respect to the IRA (in the highest tax brackets) would be as follows:
Section 6601(j) provides for a four-percent interest rate on certain estate tax payable
in installments pursuant to section 6166, in lieu of the rate set under section 6621.
The marital/nonmarital trust (also commonly referred to as the "A-B trust" or more currently sometimes the "A-B-Q" trust) is an arrangement designed to give the surviving spouse full use of the family's economic wealth, while at the same time minimizing, to the extent possible, the total federal estate tax payable
at the deaths of both spouses.
6166 2% interest rate for the applicable portion of the estate tax payable
in installments increased to $1.12 million.