Definition of 'Gross Estate'
There are a number of deductions that can be taken from the gross estate to arrive at the taxable estate. These include funeral expenses, debts, and taxes owed by the decedent. The taxable estate is then taxed at a rate of 40% for estates over $11.7 million.
The gross estate is an important concept for estate planning purposes. By understanding the components of the gross estate, you can make informed decisions about how to structure your assets to minimize your estate tax liability.
Here are some additional details about the gross estate:
* The gross estate includes all assets owned by the decedent at the time of their death, regardless of where they are located. This includes assets held in both the decedent's name and in joint ownership with another person.
* The gross estate also includes assets that are transferred to the decedent's heirs or beneficiaries within a certain period of time after their death. This is known as the "probate period," and it typically lasts for 9 months.
* There are a number of deductions that can be taken from the gross estate to arrive at the taxable estate. These include funeral expenses, debts, and taxes owed by the decedent.
* The taxable estate is then taxed at a rate of 40% for estates over $11.7 million.
If you have any questions about the gross estate, you should consult with an estate planning attorney.
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