estate tax

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Related to Estate taxes: State estate tax

estate tax

n. generally a federal tax on the transfer of a dead person's assets to his heirs and beneficiaries. Although a transfer tax, it is based on the amount in the decedent's estate (including distribution from a trust at the death), and can include insurance proceeds. Currently such federal taxation applies to the amount of an estate above $600,000, or as much as double that amount if the estate is distributed to a wife. Some states have an estate tax, more commonly called an inheritance tax.

References in periodicals archive ?
With the large, inflation-adjusted estate tax exemption amount and portability, fewer taxpayers are subject to estate taxes.
When planning for state estate taxes, though, be sure to work with an attorney licensed in the state of your client's primary residence to ensure that you are taking the proper steps to protect your client's legacy.
Advisors may find it increasingly common for estates to owe state estate taxes, state inheritance taxes or both--even if there is no federal estate tax liability.
In the absence of legislative intervention, the existing Illinois statutory scheme parallels EGTRRA's sunset by providing no Illinois estate taxes for 2010, with a return in 2011 to the good old days of the $1 million estate tax exclusion amount and 2011 credit computations.
Downtown New York, by contrast, showed only slight increases in real estate taxes relative to midtown.
Unlike homeowners, who incur and pay their real estate taxes directly, tenant-stockholders of a housing corporation indirectly pay real estate taxes incurred by the corporation through their rent.
This may be the reason why it is likely that estate taxes will stick around.
They are usually less expensive than insuring both lives separately, and they provide often-needed liquidity to disburse assets to heirs and/or to pay estate taxes.
Since the children don't want to sell the real estate in a short period of time, they take a withdrawal of $2 million to pay the estate taxes.
They own their home jointly, paying $20,280 a year in mortgage interest and $4,000 in real estate taxes.
As well as serving as a useful conservation tool, an easement can both qualify as a tax-deductible gift and significantly reduce property and estate taxes.
If the combination of these assets exceeds $600,000, your heirs will have to pay federal estate taxes.