Assume the same facts as in Problem 13-48 and that before Yuji's death in 2013 his wife already owned property valued at $300,000. Assume that each asset owned by each spouse increased 8% in value by the surviving spouse's date of death in 2013 and that Yuji's executor elected to claim the maximum marital deduction possible. Assume there were no state death taxes. From a tax standpoint, was the executor's strategy of electing the marital deduction on the QTIP trust a wise decision? Support your answer with computations.
In problem 13-48
When Yuji died in March 2013, his gross estate was valued at $8 million. He owed debts totaling $300,000. Funeral and administration expenses were $12,000 and $120,000, respectively. The marginal estate tax rate exceeded his estate's marginal income tax rate because the estate collected only about $8,000 of income. Yuji willed his church $300,000 and his spouse $1.1 million. Calculate Yuji's taxable estate.