Mitzi dies in 2009 owning assets of $7 million.Under her will,$3.5 million passes to her children and the balance to her husband.Presuming Mitzi never made any taxable gifts during her lifetime,no estate tax results from Mitzi's death.

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The estate tax exemption in 2009 was $3.5 million, which means that Mitzi's estate was fully covered by the exemption and no estate tax would be due. The bequest to her husband also qualifies for the unlimited marital deduction, so no estate tax is due on that portion either.

Mitzi Dies in 2009 Owning Assets of $7 Million