Eric dies in the current year and has a gross estate valued at $16,500,000. The estate incurs funeral and administrative expenses of $100,000 and also pays off Eric's debts which amount to $250,000. Eric bequeaths $600,000 to his wife. Eric made no taxable transfers during his life. Eric's taxable estate will be

Question

Quizplus · Accepted Answer

Eric's taxable estate is calculated by subtracting the funeral and administrative expenses, debts, and the marital deduction (bequest to his wife) from the gross estate. Thus, $16,500,000 - $100,000 - $250,000 - $600,000 = $15,550,000.

Eric Dies in the Current Year and Has a Gross