At the time of her death on September 4, 2012, Alicia held the following assets.
__________________________________________ Fair Market Value
Bonds of Emerald Tool Corporation ......................... $ 900,000
Stock in Drab Corporation ..................................... 1,100,000
Insurance policy (face amount of
$400,000) on the life of her father,
Mitch ............................................................... 80,000*
Traditional IRAs .................................................. 300,000
* Cash surrender value.
Alicia was also the life tenant of a trust (fair market value of $2 million) created by her late husband Bert. (The executor of Bert's estate had made a QTIP election.) In October, Alicia's estate received an interest payment of $11,500 ($6,000 accrued before September 4, 2012) paid by Emerald and a cash dividend of $9,000 from Drab. The Drab dividend was declared on August 19 and was payable to date of record shareholders on September 3, 2012. Although Mitch survives Alicia, she is the designated beneficiary of the policy. The IRAs are distributed to Alicia's children. What amount is included in Alicia's gross estate?