Mr. Lainson died this year on a date when the total FMV of his property was $12 million and his debts totaled $450,000. His executor paid $15,000 of funeral expenses and $50,000 of accounting and legal fees to settle the estate. Mr. Lainson bequeathed $1 million to Villanova University, $200,000 to the Lutheran church, and $3.5 million to his surviving spouse. He left the remainder of the estate to his children. Compute Mr. Lainson's taxable estate.

Question

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The taxable estate is calculated by subtracting debts, funeral expenses, and charitable bequests from the total FMV of the estate. The marital deduction for the bequest to the spouse is also subtracted. Calculation: $12 million - $450,000 (debts) - $15,000 (funeral expenses) - $50,000 (fees) - $1 million (Villanova) - $200,000 (church) - $3.5 million (spouse) = $6.785 million.

Mr Lainson Died This Year on a Date When the Total