If either Joe or Rachel dies in 2008, there will be no federal estate tax liability. There is an unlimited marital deduction for the surviving spouse. Only when both die will there be an estate tax liability over the $5.12 million exemption amount.
Thank you for posting your question. I hope that this answer helped you. Let me know if you need more help.
Answer:
federal tax which has to be paid by the spouse is equal to $1,080,000
Step-by-step explanation:
estate worth of Joel and Rachel = $2.4 million
= $2,400,000
estate is taxed at = 45 %
the amount of tax which spouse have to pay is
= [tex]\dfrac{45}{100}\times 2,400,000[/tex]
= $1,080,000
hence the federal tax which has to be paid by the spouse is equal to $1,080,000
