144. At the time of Clint’s death, part of his estate consists of the following.·Roth IRA (value of $1,000,000) with Jennifer as the designated beneficiary.·Land (worth $3,000,000) held in joint tenancy with Jennifer. Jennifer is Clint’s wife and originally furnished the purchase price.·Building (worth $3,000,000) held as equal tenants in common with Jennifer and Dana. Dana is Clint’s mother, and she originally purchased the property.Under Clint’s will, all of his property passes to his wife, Jennifer. How much marital deduction is Clint’s estate allowed? Clint and Jennifer live in Tennessee.$3,500,000. $1,000,000 + (50% ´ $3,000,000) + (1/3 ´ $3,000,000) = $3,500,000.145. Calvin’s will passes $800,000 of cash to his widowed sister, Muriel. The estate tax attributable to the cash is $110,000. Muriel dies five years later, and the estate tax generated by the $800,000 is $100,000. How much of a credit for tax on prior transfers will Muriel’s estate be allowed? $60,000. 60% ´ $100,000.146. As reflected by the tax law, Congressional policy relative to the Federal gift and estate taxes has been very inconsistent. Comment on this policy regarding the following time periods.a.From original enactment of these taxes up to the Tax Reform Act of 1976.b.From the Tax Reform Act of 1976 to EGTRRA.c.From EGTRRA to the Tax Relief Act (TRA) of 2010.d.From TRA of 2010 to ATRA of 2012.a.This period favored lifetime giving over testamentary transfers. Separate tax rates existed, with those applicable to gifts being lower than those applicable to transfers by death.b.Under the unified transfer tax system enacted in 1976, little difference existed between life and death transfers. The tax rates were the same, and the same credit applied.c.EGTRRA of 2001 favored the estate tax. Although the tax rates are the same for lifetime and testamentary transfers, the estate tax is phased out over a period of time by increases in the exclusion amount. TRA of 2010 was based on the premise that the estate and gift tax credits should again be the same (i.e., unified). For 2011 and 2012, both taxes were subject to a maximum rate of 35% and had a unified credit of $1,730,800 (exemption equivalent of $5,000,000) for 2011 and $1,772,800 (exemption equivalent for $5,120,000) for 2012.