Federal Estate Tax

Although only about 2% of all estates are subject to the estate tax (Source: IRS), many people have requested its inclusion in the Intestacy Calculators™ and about half of the programs now have this feature.

However, for those Intestacy Calculators™ which do not include these calculations, the Federal Estate Tax Calculator above provides the same result.  Simply enter the estate value and, if married, enter the amount of that estate which will be transferred outright to a surviving spouse.

Note: If you are uncertain about the amount being given to a surviving spouse and do not have a valid Last Will, click here to open the Intestacy Calculator™ for your state of interest and allow it to make the calculation for you.

Estate Value (Taxable Estate)

The taxable estate is generally the value of everything you own or control at the time of death, less the permissible deductions, such as funeral expenses.

The following is from the IRS site, which has much more detail:

Your taxable estate is your gross estate less allowable deductions.

Gross Estate
Your gross estate includes the value of all property in which you had an interest at the time of death. Your gross estate also will include the following:

1) Life insurance proceeds payable to your estate or, if you owned the policy, to your heirs,

2) The value of certain annuities payable to your estate or your heirs,

3) The value of certain property you transferred within 3 years before your death,

4) Trusts or other interests established by you or others in which you have certain powers.

Taxable Estate
The allowable deductions used in determining your taxable estate include: Funeral expenses paid out of your estate and debts you owed at the time of death.

The marital deduction is subtracted by the Federal Estate Tax Calculator above. This amount is generally the value of all the property that passes from your estate to your surviving spouse