LO.3 Regarding the formula for the Federal estate tax (see Figure 18.2 in the text), comment on the following.

a. The gross estate may include property interests not owned by the decedent at the time of death.

b. The gross estate may include assets that are not part of the probate estate (i.e., subject to administration by the executor of the estate).

c. To arrive at the taxable estate, certain adjustments must be made to the gross estate.

d. In arriving at the estate tax that is due, apply the appropriate rate from the unified transfer tax rate schedule to the taxable estate.