Determining and minimizing estate tax. Spencer Cook died on July 18 of the current year, leaving a gross estate of $8,600,000. Claims to be settled against that estate included funeral,...

Determining and minimizing estate tax. Spencer Cook died on July 18 of the current year, leaving a gross estate of $8,600,000. Claims to be settled against that estate included funeral, administrative, and medical expenses of $180,000 and other debts of $210,000. Spencer’s wife Sara has a considerable estate of her own, and she and Spencer have each agreed to leave $500,000 of their personal estate to charity. One year after Spencer’s death, Sara passed away. Allowable expenses against Sara’s estate totaled $420,000 excluding charitable bequests.

Using the estate tax rates and unified credit in the text:

1. Determine the estate tax to be paid by both Spencer and Sara assuming that no credit shelter trusts are employed and that Sara’s gross estate is $13,300,000 including the assets inherited from Spencer.