Gross Estate

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Related to Gross Estates: net estate, Taxable estate

Gross Estate

All the real and Personal Property owned by a decedent at the time of his or her death.

The calculation of the value of the gross estate is the first step in the computation that determines whether any estate tax is owed to federal or state governments. Federal and state laws define gross estate for purposes of taxation. Under federal law, the gross estate includes proceeds of life insurance policies that are payable to the decedent's estate, as well as policies to which the decedent retained "incidents of ownership" until his or her death, such as the right to change beneficiaries or to borrow against the cash surrender value of the policy.

Cross-references

Estate and Gift Taxes.

References in periodicals archive ?
691(c) allows the IRD recipient an income tax deduction for estate tax paid that is attributable to inclusion of net IRD in the decedent's gross estate.
In 2001, the second highest percentage of nonresident alien estates was in the gross estate category of $60,000 under $100,000, with 24.
2040 would have included only one-half of the property in the decedent's gross estate.
In 1995, 78,023 individuals died with gross estates at or above the Federal estate tax filing threshold of $600,000.
The Tax Court held that the trust was fully includible in the decedent's gross estate under Sec.
25) Finally, this article examines South Dakota's DAPT statutes and discusses whether a settlor's transfers to a South Dakota DAPT could be considered completed gifts for federal gift tax purposes and whether the transferred assets could be excluded from the settlor's gross estate for federal estate tax purposes.
By transferring such property, taxpayers can remove substantially appreciating assets from their estates while paying gift tax on the transfers to reduce the value of their gross estates.
For estate tax purposes, the value of property included in gross estate is fair market value (FMV), defined as "the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of all relevant facts," according to Federal Tax Regulation 20.
Set forth in Table 1 are the effective tax rates and charitable contributions for all estates reporting gross estates of $5 million or more from 2002 through 2006.
Conversely, decedents employed in each of the other broad occupation groups had average gross estates below the overall average, $4.
and established domicile, all of their assets, no matter where located, will be includible in their Federal gross estates.
In this article, liquid assets include cash, State and local bonds, Federal Government bonds, publicly traded stock, and insurance on the life of the decedent owned by the decedent and included in the total gross estate.