When Yuji died in March 2013, his gross estate was valued at $8 million. The marginal estate tax rate exceeded his? estate’s marginal income tax rate because the estate collected only about $8,000 of income. Yuji willed his spouse $1.1million. His taxable estate? (before marital? deduction) was comprised of the? following:

Gross estate

$8,000,000

Debts

(300,000)

Administration expenses

(120,000)

Funeral expenses

(12,000)

Charitable contribution to church

(300,000)

Assume Yuji?’s will also provided for setting up a trust to be funded with $400,000 of property with a bank named as trustee. His wife is to receive all the trust income semiannually for? life, and upon her death the trust assets are to be distributed equally among Yuji?’s children and grandchildren.

a. What was the amount of Yuji?’s taxable? estate? Provide two possible answers.

With (Select one) Election Without Election

Gift Splitting

QTIP

Sec 6166

(Select One)

Adjusted taxable gifts

Gift taxes

Marital deduction

Taxable estate before marital deduction $________ $________

Minus: (select one)

Adjusted taxable gifts

Gift taxes

Marital deduction

Taxable estate before marital deduction $________ $________

Taxable Estate $________ $________

b. Assume Yuji?’s widow died in December 2013. With respect to Yuji?’s former? assets, which items will be included in the? widow’s gross? estate? Provide two possible? answers, but you need not indicate amounts.

With Election $ ________

Without Election$ ________