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```					Estate Tax Calculation

Step 1:    Calculate the Taxable Estate (Gross estate less allowable deductions)

Step 3     Step 1 + Step 2 = Estate Tax Base

Step 4     Calculate Tax on Step 3 using the Unified Rate Schedule - Total Wealth Transfer Tax

Step 5     Subtract: Unified Credit Previously Used
Subtract: Unified Credit
Subtract: Out of pocket cash paid on taxable gifts
Subract: Any other credits available

Step 6     Step 4 - Step 5 = Estate Tax Due with Return

Example: On June 15, 2007 Joselyn died at a time when her gross estate was valued at \$1,950,000. She had legitimate dedu
to offset the estate of \$475,000. Her lifetime taxable gifts were as follows: 1999: \$750,000, 2001: \$450,000, 2004: \$50,000.

Step 1:            \$1,475,000        Taxable Estate                                                        Tax Years
1999
Step 3             \$2,725,000        Estate Tax Base
Total Tax                \$248,300
Step 4             \$1,107,050        Total Wealth Transfer Tax        Tax on Previous Gifts          \$0
Step 5              -\$241,050        Less: UC Previously Used
-\$207,250        Less: Cash Paid                  Available Un. Crdt     \$211,300
-\$539,750        Less: Remaining UC               Unified Credit Used    \$211,300
-\$988,050        Total Credits agains Tax         Out of Pocket Cash      \$37,000
UC Remaining to estate       \$0
Step 6               \$119,000        Tax Due with Return
2001: \$450,000, 2004: \$50,000.

Tax Years
2001       2004     Total

\$1,200,000 \$1,250,000

\$427,800     \$448,300            82000
-\$248,300    -\$427,800
\$179,500      \$20,500 \$448,300

\$9,250     \$125,250
\$9,250      \$20,500 \$241,050
\$170,250           \$0 \$207,250
\$104,750
I

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