- 9 - Less: Funeral expenses 6,500 Debts 1,107 Mortgages and Liens 0 Specific bequest to spouse 573,216 Total allowable deductions 580,823 Taxable Estate 600,000 The total gross estate, as reflected on the estate’s Form 706, is $1,180,823. The estate claimed a total marital deduction of $573,216,4 and total deductions of $580,823 from the gross estate. The marital deduction was computed on Schedule M of the estate’s Form 706, which primarily reflected the transfer of assets, including securities, life insurance policies, and individual retirement accounts, from the estate to the trust. The estate reported a gross estate tax of $192,800 and claimed the maximum unified credit against estate tax for 1997, $192,800. Respondent determined that the claimed marital deduction should be reduced by $564,862, resulting in a reduction of the marital deduction from $573,216 to $8,354. Respondent determined that the insurance payment of $8,354 was the only item to qualify for the marital deduction because it was paid directly to the surviving spouse. On September 13, 2001, Respondent determined a deficiency in the estate’s Federal estate tax of 4Section Five of Part Four of Form 706 reports that the testamentary trust received $586,670 from the estate.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011