Estates, Trusts & Gift Taxes 2 of 4 (14)

Question 1

Allowable Deductions from Estate

Answer 1

Amounts that reduce a decedent’s gross estate consisting of state death taxes paid and claimed as a deduction; a marital deduction for assets transferred to a surviving spouse, charitable contributions authorized in the will of the decedent, funeral expenses, casualty and theft losses occurring during the administration of the estate, expenses of administering the estate, and liabilities of the estate.

Question 2

Estate Tax

Answer 2

The tax required to be paid by an estate (Form 706), calculated on the taxable estate and reduced for certain credits, including the foreign death tax credit and the unified credit.

Question 3

Unified (Applicable) Credit

Answer 3

A credit equal to about 40% of the lifetime exclusion that has not otherwise been used, which is applied to reduce a decedent’s estate tax.

Question 4

Lifetime Exclusion

Answer 4

The amount ($11,400,000 in 2019) an individual can transfer during their lifetime or at death without being subject to gift, estate, and/or generation-skipping transfer taxes.