Estate Tax Computation. T died on January 4, 2015. He owned the following property on his date of death:

Cash ...........................................................$12.000.000
Stocks and bonds ........................................$ 700.000
Residence.....................................................$ 800.000
Interest in partnership...................................$ 350.000
Miscellaneous personal property .....................$ 25.000

Upon T's death, he owed $80.000 on the mortgage on his residence. T also owed a life insurance policy. The policy was term life insurance which paid $200.000 to his mother upon his death. Its value immediately before his death was $0. T had all of the incidents of ownership with regard to the policy.

During his life, T had made only one gift. He gave a diamond ring worth $30.000 (it was an old family heirloom) to his daughter in 1995. No gift taxes were paid on the gift due to annual exclusion (gift -splitting was elected and the annual exclusion was $10.000) and the unified transfer tax credit in effect for that year. The ring was worth $50.000 on his date of death.

T's will contained the following provisions:

a. To my wife I leave all the stocks and bonds.

b. To my alma mater. State University, I leave $50.000 to establish a chair for a tax professor in the Department of Accounting in the School of Business.

c. The residue of my estate is to go to my daughter.

Compute T's estate tax before any credits other than the Federal estate tax credit.