Assume a Married Couple's Total Assets Are Several Million Dollars

question 2

Multiple Choice

Assume a married couple's total assets are several million dollars and the husband dies, leaving everything to his wife. What will be the federal estate tax amount?

• A) 0 percent.
• B) 40 percent.
• C) 50 percent.
• D) 25 percent.

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Definitions:

Compounded Semi-Annually

The process of calculating and adding interest to the principal sum of a loan or deposit twice a year.

9 Years

A period of time equivalent to nine cycles of 365 (or 366 in leap years) days, commonly used in reference to durations or time frames in various contexts.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights of those involved.

Compounded Annually

Interest that is calculated once a year and added to the principal, which then earns interest the following year.