{"data":{"id":"us/26-cfr-20.2013-6","jurisdiction":"us","citation":"26 CFR 20.2013-6","heading":"-6 Examples.","body":"The application of §§ 20.2013-1 to 20.2013-5 may be further illustrated by the following examples:\nExample (1).\n(a) A died December 1, 1953, leaving a gross estate of $1,000,000. Expenses, indebtedness, etc., amounted to $90,000. A bequeathed $200,000 to B, his wife, $100,000 of which qualified for the marital deduction. B died November 1, 1954, leaving a gross estate of $500,000. Expenses, indebtedness, etc., amounted to $40,000. B bequeathed $150,000 to charity. A and B were both citizens of the United States. The estates of A and B both paid State death taxes equal to the maximum credit allowable for State death taxes. Death taxes were not a charge on the bequest to B.\n(b) “First limitation” on credit for B's estate (§ 20.2013-2):\nA's gross estate $1,000,000.00\nExpenses, indebtedness, etc. 90,000.00\nA's adjusted gross estate 910,000.00\nMarital deduction $100,000.00\nExemption 60,000.00\n160,000.00\nA's taxable estate 750,000.00\nA's gross estate tax 233,200.00\nCredit for State death taxes 23,280.00\nA's net estate tax payable 209,920.00\n“First limitation” = $209,920.00 (§ 20.2013-2(b)) × [($200,000.00 − $100,000.00) (§ 20.2013-4) ÷ ($750,000.00 − $209,920.00 − $23,280.00 + $60,000.00) (§ 20.2013-2(c))] $36,393.90\n(c) “Second limitation” on credit for B's estate (§ 20.2013-3):\n(1) B's net estate tax payable as described in § 20.2013-3(a)(1) (previously taxed transfer included):\nB's gross estate $500,000.00\nExpenses, indebtedness, etc. $40,000.00\nCharitable deduction 150,000.00\nExemption 60,000.00\n250,000.00\nB's taxable estate 250,000.00\nB's gross estate tax $65,700.00\nCredit for State death taxes 3,920.00\nB's net estate tax payable 61,780.00\n(2) B's net estate tax payable as described in § 20.2013-3(a)(2) (previously taxed transfer excluded):\nB's gross estate $400,000.00\nExpenses, indebtedness, etc $40,000.00\nCharitable deduction (§ 20.2013-3(b)) = $150,000.00 − [$150,000.00 × ($200,000.00 − $100,000.00 ÷ $500,000.00 − $40,000.00)] 117,391.30\nExemption 60,000.00\n217,391.30\nB's taxable estate 182,608.70\nB's gross estate tax 45,482.61\nCredit for State death taxes 2,221.61\nB's net estate tax payable 43,260.00\n(3) “Second limitation”:\nSubparagraph (1) $61,780.00\nLess: Subparagraph (2) 43,260.00\n$18,520.00\n(d) Credit of B's estate for tax on prior transfers (§ 20.2013-1(c)):\nCredit for tax on prior transfers = $18,520.00 (lower of paragraphs (b) and (c)) × 100 percent (percentage to be taken into account under § 20.2013-1(c)) $18,520.00\nExample (2).\n(a) The facts are the same as those contained in example (1) of this paragraph with the following additions. C died December 1, 1950, leaving a gross estate of $250,000. Expenses, indebtedness, etc., amounted to $50,000. C bequeathed $50,000 to B. C was a citizen of the United States. His estate paid State death taxes equal to the maximum credit allowable for State death taxes. Death taxes were not a charge on the bequest to B.\n(b) “First limitation” on credit for B's estate (§ 20.2013-2(d))−\n(1) With respect to the property received from A:\n“First limitation” = $36,393.90 (this computation is identical with the one contained in paragraph (b) of example (1) of this section).\n(2) With respect to the property received from C:\nC's gross estate $250,000.00\nExpenses, indebtedness, etc. $50,000.00\nExemption $60,000.00\n$110,000.00\nC's taxable estate 140,000.00\nC's gross estate tax 32,700.00\nCredit for State death taxes 1,200.00\nC's net estate tax payable 31,500.00\n“First limitation” = $31,500.00 (§ 20.2013-2(b)) × [$50,000.00 (§ 20.2013-4) ÷ ($140,000.00 − $31,500.00 − $1,200.00 + $60,000.00) (§ 20.2013-2(c))] $9,414.23\n(c) “Second limitation” on credit for B's estate (§ 20.2013-3(c)):\n(1) B's net estate tax payable as described in § 20.2013-3(a)(1) (previously taxed transfers included) = $61,780.00 (this computation is identical with the one contained in paragraph (c)(1) of example (1) of this section).\n(2) B's net estate tax payable as described in § 20.2013-3(a)(2) (previously taxed transfers excluded):\nB's gross estate $350,000.00\nExpenses, indebtedness, etc $40,000.00\nCharitable deduction (§ 20.2013-3(b)) = $150,000.00 − [$150,000.00 × ($200,000.00 − $100,000.00 + $50,000.00) ÷ ($500,000.00 − $40,000.00)] 101,086.96\nExemption 60,000.00\n201,086.96\nB's taxable estate 148,913.04\nB's gross estate tax 35,373.91\nCredit for State death taxes 1,413.91\nB's net estate tax payable 33,960.00\n(3) “Second limitation”:\nSubparagraph (1) $61,780.00\nLess: Subparagraph (2) 33,960.00\n$27,820.00\n(4) Apportionment of “second limitation” on credit:\nTransfer from A (§ 20.2013-4) $100,000.00\nTransfer from C (§ 20.2013-4) 50,000.00\nTotal 150,000.00\nPortion of “second limitation” attributable to transfer from A (100/150 of $27,820.00) 18,546.67\nPortion of “second limitation” attributable to transfer from C (50/150 of $27,820.00) 9,273.33\n(d) Credit of B's estate for tax on prior transfers (§ 20.2013-1(c)):\nCredit for tax on transfer from A=\n$18,546.67 (lower of “first limitation” computed in paragraph (b)(1) and “second limitation” apportioned to A's transfer in paragraph (c)(4)) × 100 percent (percentage to be taken into account under § 20.2013-1(c)) $18,546.67\nCredit for tax on transfer from C=\n$9,273.33 (lower of “first limitation” computed in paragraph (b)(2) and “second limitation” apportioned to B's transfer in paragraph (c)(4)) × 80 percent (percentage to be taken into account under § 20.2013-1(c)) 7,418.66\nTotal credit for tax on prior transfers 25,965.33","path":["Title 26—Internal Revenue","CHAPTER I—INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY","SUBCHAPTER B—ESTATE AND GIFT TAXES","PART 20—ESTATE TAX; ESTATES OF DECEDENTS DYING AFTER AUGUST 16, 1954"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-26.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:25:11Z","sha256":"a5f970c3f855d20aee7043b5d38c457de503da59f17094442664e2e58f11d4a6","source_id":"us-cfr","stale":true,"prev":"us/26-cfr-20.2013-5","next":"us/26-cfr-20.2014-1"},"notice":"GroundRules: Original legal text. Not legal advice."}