The estate tax is a levy on the total value of a decedent's estate, including all real, tangible, and intangible property, minus any liabilities. This tax is levied by the government based on the estate's fair market value at the time of death. The amount due may be reduced by applying available credits and exemptions. Comprehensive knowledge of federal and state tax laws is necessary for accurate calculation and assessment.
An estate tax payable is the amount resulting from specific deductions from the tentative estate tax, including the unified credit, state death taxes, gift taxes paid on gifts made before 1977, foreign death taxes, and estate taxes on prior transfers.
