Dec. 1, 2005 Wife dies and the trust allows her to use her Exemption Amount ($1.5 million in 2005) to pass 50 percent of the family home, worth $1.5 million, to her beneficiaries estate tax free. The other 50 percent interest of the family home, worth $1.5 million, will be subject to federal estate taxes at a rate of 47 percent.

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