John dies with an estate valued at $3 million which is comprised of the following assets: $1 million home; $1 million IRA; and $1 million of cash. John's wife is the owner and the beneficiary of a $1 million insurance policy on John's life. The ASPCA is the beneficiary of John's IRA. John's will provides that upon his death, ½ of his assets will pass to his wife, with the remaining assets passing to the ASPCA. John dies in 2006.
- What is the value of the marital deduction allowed to John's estate?
- What is the value of John's charitable deduction?
- What credits are available to reduce John's estate tax liability?
- I. Marital deduction.
- II. Charitable deduction.
- III. Administration expenses. (more than one may apply)