dyga

look at the example in the text book…. there is one on a left side page (do not have the book with me) - somewhere around 240-245 I believe.
They leave a gift of 100 Mill Yen to their child, out of their 500 Million estate.
100 Mill goes to child.
They are left with 400 Mill. But taxes are considered only on 355 Million (100 * .45 rebate provided) and so they are left with 355 * (1-Te) which is given to the son as estate.
Son ends up with 100 + 355 * (1-Te).
if they bequeathed - without the gift - they pay the estate taxes on the full 500 Mill and son gets less.
Janakasri - the deduction on the donation is present even for our personal taxes.