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
Day-to-day care that a patient (generally older than 65) receives in a nursing facility or in his or her residence following an illness or injury, or in old age, such that the patient can ...
Modest amounts of coverage sold on a debit basis. The face amount is usually less than $1000. ...
Same as term Export-Import Bank: partnership between an agency of the U.S. government and the Foreign Credit Insurance Association (50 commercial insurance companies, both stock and ...
Regulations of the national association of insurance commissioners (naic) that dictate provisions that all individual health insurance policies must contain. All states now require these ...
Indemnification of a school for the loss of tuition, and room and board fees when it is forced to suspend classes because of the occurrence of a peril. ...
Department in an insurance company that prepares policies to be sent to the policyholder, sends the policies, and keeps records of the policies that were sent. ...
Person who has the responsibility for examining the risk to determine whether or not to insure it. ...
Particular type of inland marine insurance. ...
Same as term Binder: temporary insurance contract providing coverage until a permanent policy is issued. In property and casualty insurance, some agents have authority to bind the insurance ...
Have a question or comment?
We're here to help.