So the son got a non-taxable $7M life insurance payout, and the wife and son (the wife is not the son's mom) both got some non-taxable trust money.
The tax is payable BEFORE the wife gets the 20%. So the tax is on the whole $70M minus the $5.5 exemption. If that is $30, the wife then gets 20% of $40M, not 20% of $70M.
I REALLY enjoy the advice to the sisters that they should renounce their share of the money so it can all go to the wife tax-free. Andy Dufresne, "Do you trust your [sister-in-law]?" Cuz you will be giving her $56M and taking nothing, but it will keep the government from getting $30M. I am sure she will gift you back the $32M you otherwise would have received.........Right....hello??