Probate & Trust Law Section Conference Manual ... - Minnesota CLE

Table A calculation (calculator lines 8 - 16) 493,880
148,080
Table B calculation (calculator line 17) 32,360
Minnesota estate tax due (because below the filing requirement) -0-
Tax saved (compared to Example #1) 57,680
Appendix – 9.
Example #4 – Add Insurance To Spouse: Assume the same facts as example #3 except
that prior to his death he marries Betty. He makes all of the lifetime gifts and leaves all
of his prior assets to his children as discussed in example #3. In addition, he purchases a
$50,000 life insurance policy which he leaves to his new spouse.
life insurance to new spouse 50,000
home 300,000
bank 5,000
investments 190,000
401(k) 500,000
total federal gross estate (line 1 - above the filing requirement): 1,045,000
marital deduction (life insurance to new spouse)
allowable deductions - administration expenses
plus taxable gifts ($410,000 minus $13,000 for each of 3 children) 371,000
Minnesota adjusted taxable estate (calculator line 7) 1,356,000
Table A calculation (calculator lines 8 - 16) 493,880
148,080
Table B calculation (calculator line 17) 32,360
Minnesota estate tax due (his estate is above the filing requirement) 32,360
Tax cost (compared to Example #3) of $50,000 to his spouse 32,360
Appendix – 10.
Example #5 - $1,000,000 of Lifetime Gifts: Jack prior to getting married to Betty,
makes the following lifetime gifts (Note: the values of his assets have been changed to
make this example work better):
home 300,000
investments 400,000
lake cabin 300,000
Total Lifetime Gifts 1,000,000
5