Regarding the formula for the Federal estate tax (see Figure 27.2), comment on the following.
a. The gross estate includes only property interests owned by the decedent at the time of death.
b. The gross estate is not the same as the probate estate.
c. In arriving at the taxable estate, all prior gifts must be added to the gross estate.
d. Taxable estate × Applicable unified transfer tax rate = Estate tax due.

Figure 27.2: