Mr. Dogbert dies on March 1, 2015, and leaves his entire estate, with a fair value of $10,600,000 (after settlement of all estate expenses and liabilities) to his sole surviving family member, his daughter Emily.

REQUIRED

a. Calculate the federal tax on Mr. Dogbert's estate. (You may ignore any state-level inheritance taxes and assume that federal taxes are paid at the 40 percent rate.)

b. Offer suggestions as to how the estate tax might be avoided, leaving Dogbert's daughter Emily better off financially.