Jennifer Johnson

Estate Tax Basics

Estate taxes are taxes on the estate of a deceased person before the estate is given out to the heirs. Also known as the death tax or inheritance tax. The total of all the items of the estate is the Gross Estate, the estate can range from cash, securities, real estate, annuities, business interests, and other belongs to the deceased person. After the Gross Estate is taken, what is left after debts, mortgages, estate administration expenses, qualified charities and property that passes to surviving spouse is Taxable Estate. Once the net amount is found, the value of lifetime taxable gifts is added to the net amount and the tax then is figured out.