Federal Estate Tax

Federal Estate Tax

A tax in the United States applied to the value of the estate of a deceased person after all debts of the deceased are paid. The federal estate tax has a large exemption; the amount varies, but is always more than $1 million. The federal estate tax derives fairly little income for the federal government, but it is used to prevent (or at least reduce) the proliferation of dynastic wealth. See also: Death Tax.
References in periodicals archive ?
Currently, 19 states and the District of Columbia impose estate or inheritance taxes, or both, in addition to the federal estate tax.
2, 2014 /PRNewswire/ -- Abacus Life Settlements, a leading provider in the secondary market for life insurance, today called for establishing greater consumer awareness of the options available to seniors who no longer need life insurance policies purchased for federal estate tax purposes.
WHAT CONGRESS DID: Fixed the federal estate tax exclusion at $5 million, indexed annually to inflation, putting the individual exclusion at $5.
12: Preparing Form 706: The Federal Estate Tax Return
The American Farm Bureau Federation has for years lobbied Congress to repeal the federal estate tax because of alleged hardships visited on the estates of some farmers.
111-312) (the 2010 tax act) relating to the federal estate tax.
If the federal estate tax exemption amount stays at the $5 million level or close to it, then certainly fewer estate owners will have to worry about federal estate taxes.
In 2010, the federal estate tax or "death tax" was entirely eliminated, but only for 2010.
The full amount of the interest is deductible on J's federal estate tax return due nine months after the date of death, even though the interest is not actually payable for 15 years.
In addition to these federal gift tax changes, there are numerous federal estate tax changes contingent upon when a taxpayer passes away.

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