estate tax

n. A tax imposed on the right to transfer property by inheritance and assessed on the net value of a decedent's estate before distribution to the heirs.

estate′ tax`

n. a tax imposed on the net worth of a decedent's property prior to distribution to the heirs. Also called death tax. [1905–10]

Thesaurus

Noun

estate tax - a tax on the estate of the deceased persondeath duty, death tax, inheritance taxtransfer tax - any tax levied on the passing of title to property

estate tax

Related to estate tax: inheritance tax, death tax, gift tax, 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.

estate tax

Estate tax

A federal or state tax imposed on an individual's assets inherited by heirs.

Estate Tax

A tax on the assets a deceased person leaves behind. These assets include all personal property, real estate, securities and other things. In the United States, the estate tax is applied to the value of an estate that remains after all the debts of the deceased are paid, if the value of the estate exceeds a certain amount, which is always over $1 million. The estate tax should not be confused with an inheritance tax, which is a tax on the income one receives from an estate.

estate tax

A tax on the estate of the deceased before any distribution is made to the heirs. A federal unified gift and estate tax provides an exemption before any tax is paid. Although some states also levy an estate tax, it is generally at a much lower rate than the federal tax. Also called death tax. Compare inheritance tax.

Estate tax.

Your estate owes federal estate tax on the value of your taxable estate if the estate is larger than the amount you are permitted to leave to your heirs tax free.

That amount, which is set by Congress, is $2 million for 2006, 2007, and 2008 and is scheduled to increase to $3.5 million in 2009.

Under current law, the estate tax will be eliminated in 2010. Without further Congressional action, the tax will be reinstated in 2011. However, modifications to the law may be made before that date.

If your estate may be vulnerable to these taxes, which are figured at a higher rate than income taxes, you may want to reduce its value. You could do this by using a number of tax planning strategies, including making nontaxable gifts and creating irrevocable trusts.

Further, if you're married to a US citizen and leave your entire estate to your spouse, there are no estate taxes, no matter how much the estate is worth. However, estate taxes may be due when your surviving spouse dies.

You may also face estate taxes in your state.

estate tax

A tax imposed on the value of the estate of a decedent.The conceptual justification is premised on a peculiarly American notion that it is undesirable for generations to accumulate wealth by passing it to each other in a manner similar to that of English aristocracy and that each generation should make its own mark and earn its own way. As a result, it is considered advantageous to remove wealth from each generation by way of estate taxes and use the money for the common good.For details,see Publication 554,“Survivors,Executors and Administrators”available at the IRS Web site,www.irs.gov.

estate tax

estate tax

estate′ tax`

estate tax

estate tax:

estate tax

estate tax

estate tax

Estate tax

Estate Tax

estate tax

Estate tax.

estate tax

estate tax

Synonyms for estate tax

noun a tax on the estate of the deceased person

Synonyms

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