Determining Taxable Estate
When Yuji dies in March 2009, his gross estate is valued at $6 million. He owes debts totaling $300,000. Funeral and administration expenses are $12,000 and $120,000, respectively. The marginal estate tax rate will exceed his estate’s marginal income tax rate. Yuji wills his church $300,000 and his spouse $1.1 million. What is Yuji’s taxable estate?