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Taxable Estate
(redirected from Taxable Estates)

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Taxable estate
That portion of a deceased person's estate that is subject to transfer tax.

Taxable Estate
The value of an individual's estate that is subject to taxation. The taxable estate includes the actual value of the estate and most gifts and transfers made for a certain period of time before death. It is important to note that any assets left to a surviving spouse and all assets under a certain dollar amount (under $1 million, depending on the year) are usually excluded from the taxable estate. See also: Estate tax.


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According to the Urban-Brookings Tax Policy Center, if the $1 million exemption is in place for 2011, the number of taxable estates is expected to increase to 44,000 from 5,500.
Sean McCann, NFU tax specialist, said: "This announcement abandons the normal policy of regularly increasing the threshold and means more tax will be charged on farmers' taxable estates over the IHT threshold of over pounds 325,000, particularly if asset values rise sharply.
But until lawmakers act, the $1-million exclusion level stands -- making it increasingly important for upper-income Americans to take advantage of gifting strategies to reduce their taxable estates.
 
 
 
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