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Learning about Estate Tax

What exactly is Estate Tax? Curious people will be shocked to find out that this is your right to transfer your property when the time of your death has arrived. Yes this is Estate Tax and No this is not a Will. These two things are totally different. Let me clear out for you what an estate Tax really entails. This would consist of an accounting of basically everything that you have owned or any interests at the time of your death. The fair market value is what will be used. This may not exactly be what you originally paid for your asset or how much they were when you got them when back when. Gross estate would be the total of all these items that you possess. This will include mostly assets, property, business, trusts, and insurance. Once the gross estate has been accounted for, it will be given a few deductions here and there which will arrive at your taxable estate. In special instances, there may even be a reduction in value. Mortgages, other debts, estate expenses, and qualified charities. After the basic net amount has been computed for, the value of lifetime taxable gifts will be added to the number you get then after the tax will be removed by the available unified credit. Mostly simple estates like cash, publicity traded securities, small amounts of other assets that may be easily valued, and there will be no special deductions which will be given or elections, or any jointly held property. These do not at all require any filing of an estate tax return. The filing will only be asked for or required if for instance your estates with all the combined gross assets and prior taxable gifts would exceed $1.5 million, $2 million for descents who died in 2009. For the years 2010 and 2011 being more recent it would be $5 million dollars (in exemption to the rule for some descents who passed in the year of 2010). Now from the year 2012 to this year, this prices would range from $5.1 million dollars to $5.3 million dollars.

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