What deductions apply to the Adjusted Gross Estate?

The Adjusted Gross Estate includes both marital and charitable deductions, which is why this answer is correct.

Marital deductions allow for the transfer of unlimited assets to a spouse without incurring estate taxes at the time of transfer. This deduction is designed to ensure that marital assets can be passed on without immediate tax liability, facilitating an equitable distribution of wealth between spouses.

Charitable deductions, on the other hand, allow for the deduction of bequests made to qualified charitable organizations from the gross estate. This encourages philanthropic giving and ensures that a portion of the estate can be directed towards charitable purposes without incurring taxes on that amount.

By including both of these deductions, the Adjusted Gross Estate provides a more accurate representation of the taxable estate after accounting for these significant considerations. This calculation helps determine the estate tax that may ultimately be owed, factoring in the intentions to support both familial and charitable interests.