CFP

Estate Tax - Adjusted Gross Estate

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



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