Estate Tax

Estate tax is a federal or state tax that is imposed on the transfer of property from a deceased person to their heirs or beneficiaries. This tax is calculated based on the total value of the decedent's taxable estate, which may include cash, securities, real estate, insurance, trusts, business interests, and other assets at the time of death. The tax is applied before the assets are distributed to the heirs. It is important to note that deductions may be allowed for debts, funeral expenses, administration costs, charitable gifts, and property transferred to a spouse.