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estate tax

   Also found in: Dictionary/thesaurus, Financial, Encyclopedia, Wikipedia 0.01 sec.

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.



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This year is different, however, because the estate tax will also be expiring.
Certain estate tax implications exist for both IRAs or 401k plans when the assets contained within them are transferred from the original owner to one or more beneficiaries.
Way back in 2001, it was inconceivable that Congress would not act again within that 10-year window to make permanent changes to(and perhaps even completely eliminate) the estate tax But nine years, two wars, two presidential elections, one Category 5 hurricane, and one we-can't-call-it-a-depression economic crisis later, none of the estate tax issues that have been hanging in the balance for nearly a decade has been resolved.
 
 
 
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