Estate Tax Liability

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Estate Tax Liability

The amount an estate owes to the government before it can be distributed to heirs. The estate tax liability is calculated as a certain percentage of the value of an estate after all the debts of the deceased are repaid and certain deductions are taken. However, there is no estate tax liability calculated on the first $1 million (sometimes more) of an estate's value.
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In addition to achieving your philanthropic goals, such gifts can offset income and estate tax liabilities.
The estate was also allowed to deduct interest on the $700,000 that the decedent's ex-wife loaned the estate so that it could pay its estate tax liabilities.
Business ownership interests fuel your personal net worth, so a change in ownership status can present new opportunities to reduce your income and estate tax liabilities while increasing your charitable contributions.
For example, as Illinois has an exclusion amount of only $2,000,000 from Illinois estate-tax liability, Illinois clients with a taxable estate in excess of $2,000,000 may want to consider the purchase of life insurance to fund Illinois estate tax liabilities.
Kyl has been working on fine-tuning the revenue raising provisions--one option would allow for the prepayment of estate tax liabilities at a lower rate.
AALU lobbyists, he said, are also telling congressional staffers that adding reunification "would also increase estate planning opportunities which utilize life insurance and help ensure that families have sufficient assets to meet estate tax liabilities without selling family businesses and other assets.
Provide significant opportunities to reduce real estate tax liabilities.
This type of gift can reduce various estate tax liabilities.
These provisions have included: special use valuation--the valuation of property at its actual, rather than its potential, use in a family enterprise; the qualified family-owned business deduction; and the deferral of Federal estate tax liabilities [1].
In March 1996, the IRS increased the deficiency associated with the charitable deduction because the estate tax liabilities were now subject to refund and no longer entitled to the federal and state income tax deductions.
Financial difficulties caused by excessive estate tax liabilities are a frequent cause of business failures.
Tax legislation now in Congress could add millions of people to the list of those with estate tax liabilities.