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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, the court held that the estate tax liability of the husband's estate could not be deducted from the widow's gross estate, since it was not a debt of that estate.
Let's look at Joe's potential estate tax liability under three different scenarios.
5 million will have no estate tax liability if she dies in 2009 (or 2010) but will have a liability if her death occurs in 2011.
 
 
 
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