Estate Tax Liability

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.
Mentioned in ?
References in periodicals archive ?
Advisors may find it increasingly common for estates to owe state estate taxes, state inheritance taxes or both--even if there is no federal estate tax liability.
H is concerned about his ever-growing estate tax liability and purchases a $5 million life insurance policy for a $75,000 annual premium.
This change would affect adjusted taxable gifts, increasing the estate tax liability by $249,000.
According to sources people buying insurance trusts already have, or are expected to have an estate tax liability.
Plans can be devised to distribute the client's estate upon death to family members in an orderly method anticipating the increased estate tax liability.
A third-party trust (TPT) enables a client to maintain and protect businesses and investments, while reducing potential estate tax liability and exposure to creditors.
With federal estate tax rates reaching as high as 55%, a small business owner's death and the resulting estate tax liability can create additional problems for the business, ranging from negative cash flow to insolvency.
reveals that 40 percent of those American adults with high net worth(2) - those at risk for federal estate tax liability - do not have an estate plan.
Because the GRAT's value is included in R's estate, the ILIT offers protection against the potential estate tax liability from that inclusion.
Therefore, the estate tax liability plus interest may exceed the amount of the legacy.
The new online Trust and Estate Center allows visitors to calculate their potential estate tax liability and identify significant life events that call for changes to an existing estate plan.
The transactions were not made for a legitimate business purpose; the only apparent purpose was the reduction of estate tax liability.