Fred Bear died in January 2019. His estate consisted of the following:

a.) $10,000,000 FMV of cash & stock investments (owned jointly by Fred & spouse Wilma)

b.) a warehouse with an original cost of $250,000 and a FMV of $500,000. Accumulated depreciation = $60,000. The warehouse has a $35,000 mortgage on it. Fred owns this asset. (It is not jointly owned).

In his Will, he specified that $400,000 be donated to the Rocky Mountain Elk Foundation (a charitable organization), $1,000,000 be shared between his two kids, $30,000 in executor fees to be paid to his nephew, with the remaining value of his estate of $4,035,000 transferred to his surviving spouse, Wilma Bear.

What is Freds taxable estate, and what is the amount of estate tax that is owed on the estate?

If Wilma dies in December 2019, what is the amount of her estate tax exemption? Assume that neither Fred nor Wilma made any taxable gifts during their lifetimes, and that Freds estate elected to pass the unused portion of his exclusion to Wilma (that is, take advantage of the portability feature of the current estate tax law).