Federal Estate Tax
Definition of "Federal estate tax"
Federal tax imposed on the estate of a decedent according to the value of that estate. The first step in the computation of the federal estate tax owed is to determine the value of the decedent's gross estate. This determination can be made by adding the following values of assets owned by the decedent at the time of death:
- property owned outright.
- gratuitous lifetime transfers, but with the stipulation that the decedent retained the income or control over the income.
- gratuitous lifetime transfers subject to the recipient's surviving the decedent.
- gratuitous lifetime transfers subject to the decedent's retaining the right to revoke, amend, or alter the gift.
- annuities purchased by the decedent that are payable for the life time of the named survivor as well as the annuitant.
- property jointly held in such a manner that another party receives the decedent's interest in that property at the decedent's death because of that party's survivor ship.
- life insurance in which the decedent retained incidents of ownership.
- life insurance that was payable to the decedent's estate.
Popular Insurance Terms
Section of the "Unfair Trade Practices Code" of most states that declares the use of coercion to be in violation of the state code. ...
Death caused by a person without legal justification. Wrongful death may be the result of negligence, such as when a drunken driver hits and kills someone; or it may be intentional, as when ...
Individual permitted to enter property with the permission of the owner or the person who controls the property. There is no mutual profit motive; the licensee comes onto the property for ...
Sum provided by a disability income insurance that pays a multiple of the monthly indemnity to cover the costs associated with a retraining course attended by the insured wage earner when ...
Recording and presentation of financial statements, such as the annual statement, by the insurance company. Financial reporting statements are used by the State Insurance Commissioner in ...
Money expended with the object of profit. The goal of an insurance company is to invest in assets with a rate of return greater than that to be paid out as benefits under its policies. ...
Income paid under a disability policy that is not covered under workers compensation benefits. It is usually expressed as a percentage of the insured's income prior to the disability, but ...
Accounting procedures that defer the full funding of a life insurance net level premium reserve to accommodate the policy acquisition cost in the early years of a policy. First-year policy ...
Coverage for persons whose medical history includes serious illness such as heart disease or whose physical condition is such that they are rated below standard. A policy may specifically ...
Have a question or comment?
We're here to help.