Discuss the qtip trust a wise decision

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Prentice Hall's Federal Taxation 2014 Comprehensive C13-49

Assume the same facts as in Problem C:13-48 and that before Yuji's death in 2013 his wife already owned property valued at $300,000. Assume that each asset owned by each spouse increased 8% in value by the surviving spouse's date of death in 2013 and that Yuji's executor elected to claim the maximum marital deduction possible. Assume there were no state death taxes. From a tax standpoint, was the executor's strategy of electing the marital deduction on the QTIP trust a wise decision? Support your answer with computations.

Reference no: EM131812689

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