Is this lilac bush dead?

[NewGardenTalent]

My wife thinks this lilac tree is fine. I think it's dead with fungus on it. I need you pros opinion. Are these mushroom looking growths fungus? It was dead where these growths were. I could snap the branch off with my hands. Isn't this a termite's heaven? Should I take this lilac tree down or try to salvage it?
Thanks




[img]https://i1005.photobucket.com/albums/af173/justmenj/2012-03-22_16-45-36_421.jpg[/img]

[img]https://i1005.photobucket.com/albums/af173/justmenj/2012-03-22_16-45-30_543.jpg[/img]

[img]https://i1005.photobucket.com/albums/af173/justmenj/2012-03-22_16-59-02_491.jpg[/img]

[bullthistle]

Wow that is the extreme. Something is affecting it. Try pruning it down to 6 inches. It looks pretty old and never taken care of. Could it be from too much moisture?