Prepare an estate tax return (Form 706) for Marcia Miller, who died July 23, 2016. Marcia (born April 2, 1930) resided at 117 Brandywine Way, Eastern City, PA 19000 and was a lifelong Pennsylvania resident. Her first husband, Arthur Adams, died in 1995. In June 1999, she married Matt Miller, a U.S. citizen, who survived her. Marcia has three children (Andy, Annie, and Archie Adams) from her first marriage. Date of death values of the properties discovered at Marcia’s death are listed below.

• Principal residence with a value of $420,000. Purchased by Marcia in 2001 and titled in the names of Matt and Marcia Miller, joint tenants with right of survivorship.

• Household furnishings acquired by Marcia during her first marriage and valued at $62,000 when she died.

• $1 million cash in a money market account in Marcia’s name. On her date of death, there also was $2,200 of accrued interest in the account.

• $17,000 checking account at Keystone State Bank in the names of Marcia and Matt as tenants in common.

• Stock portfolio in Marcia’s name with fair market value at her death of $5.6 million.

• $1 million life insurance policy. Marcia purchased the policy in 1990 and held incidents of ownership. Beneficiary is Marcia’s estate.

• QTIP trust established at Franklin State Bank by Arthur Adams. His executor claimed a 60% marital deduction on the trust, valued then at $750,000. Marcia received all the income monthly for life, and the remainder is to go to the three Adams children in equal shares. The trust was valued at $1.8 million at Marcia’s death.

• Trust at Quaker State Bank with value of $500,000. The trust was created under the will of Marcia’s uncle, Josh Judson, who died in 1992. Marcia was entitled to receive all the income annually for life and was granted the power to will the property to such of her descendants as she so desired with the specification that, if she did not exercise the power, the property would pass to Josh’s former housekeeper, Yvonne Jones. Marcia’s will included the following provisions:

• I bequeath to my spouse Matt all of my tangible, personal property.

• To First Lutheran Church I leave $50,000.

• To a trust with PHL Bank I leave $200,000. Matt is to receive all the trust income quarterly for life, and the remainder is to be divided equally at his death among my three children or their estates.

• I leave my sister Annette $100,000, but if she disclaims this amount, it will go instead to my beloved spouse.

• I appoint the property in the trust at Quaker State Bank to Annie Adams (my daughter).

• The rest of my property I leave to Andy Adams (my first born). Other pertinent information follows:

• As of her date of death, Marcia owed her country club $800.

• The cost of Marcia’s funeral and tombstone totaled $15,000.

• Her accountant’s, attorney’s, and executor’s fees are estimated to be $120,000.

• Annette made a qualified disclaimer of the $100,000 bequest.

• Marcia’s executor, Hy Phee, will make whatever elections will result in the lowest estate tax payable. During her life, Marcia never made any taxable gifts and never consented to gift splitting.

• Assume that, under state law, taxes and any other costs associated with death are payable from the estate’s residue and that the state death tax owed is equal to the state death tax credit available on the federal estate tax return.