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
Part of the federal Medicare program for additional coverage on a voluntary basis. The Medicare program is divided into two parts: (1) Hospital Insurance provides hospital benefits to ...
Federal law passed in 1920 that allows any seaman incurring bodily injury as the result of the performance of one or more functions of the job to bring a suit for damages against the ...
Investments restricted to short-term Treasury bills (T-bills) and repurchase agreements secured by Treasury bills. These T-bills are secured by the full faith and credit of the Unites ...
Coverage for an insured's liability for damage to another's property from leakage or overflow of water. Some liability policies specifically exclude water damage, including that caused by ...
Undiscounted loss reserves that must be maintained by property and casualty insurance companies in an adequate amount to provide for the payment of the settlement value of the outstanding ...
Insurance company that is licensed by a state to market and service particular lines of insurance in that state. ...
Coverage for liability for damage to property of others from untimely discharge of fire-fighting sprinkler systems. This coverage is available as an endorsement to broad-form comprehensive ...
Same as term Contingency reserve: percentage of total surplus retained, in insurance company operations, that serves as a reserve to cover unexpected losses as well as to cover the ...
Smallest face amount of life insurance that an insurance company will write on any one person. ...
Have a question or comment?
We're here to help.