Adjusted Gross Estate
The adjusted gross estate is computed by taking the gross estate less all expenses (deductions) associated with the estate. Only the marital, state death tax and charitable deductions are not taken as expense deductions against the gross estate.

Deductions from the Adjusted Gross Estate
The marital, state death tax and charitable deductions are subtracted from the adjusted gross estate to determine the taxable estate.

  • "Unlimited Marital Deduction" if two conditions are met:
    Property passes directly to the surviving spouse
    Property was included in the decedent's gross estate
  • Charitable deductions:
    - Direct transfers to charities are 100% deductible from the adjusted gross estate for both estate and gift tax purposes.

As of 2014, there are 21 states (and Washington, D.C.) that impose either an estate or inheritance tax at the state level, and with several states hurting for revenue to meet their budgets, it's expected that more states could very well institute an estate or inheritance tax in the near future. Hawaii was the most recent state to adopt its own state estate tax in May 2010.

Taxable Estate
Adjusted Gross Estate
less Marital deduction
less Charitable deductions
less State death taxes
= Taxable Estate

Adjusted Taxable Gifts and Tax Calculations

Related Articles
  1. Taxes

    Estate Taxes: Who's on the Hook?

    Inheritance taxes can be tricky. Most people have to deal with them at a very inconvenient time. It's better to learn the laws now so you're ready later.
  2. Financial Advisor

    How Life Insurance Can Help Reduce Estate Taxes

    Inheritance is a double-edged sword, as leaving money can create estate tax burdens. Opting for a life insurance plan can help mitigate those burdens.
  3. Taxes

    8 States With Estate Taxes

    Understand the difference between the federal estate tax and state-specific estate taxes. Learn about some of the worst states with estate taxes.
  4. Taxes

    How Much Will You Owe on Your Inheritance?

    Estate planning can be unpleasant, but in order to get the full benefit of what you've inherited, it’s important to be prepared for the related taxes.
  5. Taxes

    Get Ready For The Estate Tax Phase-Out

    Changes to federal legislation will affect how your assets are treated once you're gone - be prepared.
  6. Retirement

    How to Tell if You Need an Estate Planning Lawyer

    Estate planning is an important and often neglected part of financial planning, which can be costly when avoided or done improperly.
  7. Taxes

    An Overview Of Itemized Deductions

    Not taking the standard deduction this year could save you hundreds of dollars.
  8. Retirement

    Estate Planning and Elderly and Passed Clients

    By keeping up with new estate tax rules, financial advisors can help elderly clients save big on tax costs.
  9. Investing

    Can Real Estate Stabilize Your Portfolio?

    History suggests that real estate can provide diversification and a hedge against inflation.
  10. Taxes

    Tax Deductions For Rental Property Owners

    The IRS defines a real estate professional as someone who works more than half of her time in the business, and more than 750 hours per year working on her properties.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center