DEFINITION of 'Adjusted Gross Estate'
The net worth of the deceased's estate after deducting the cost of any outstanding debts and admistrative costs associated with the individual. The adjusted gross estate is also the value in which estate taxes are levied upon.
BREAKING DOWN 'Adjusted Gross Estate'
For example, assets that are considered to be part of the gross estate would include any property, cash or investments owned by the deceased. However, if a mortgage is owed on the property, the value of the mortgage would be deducted from the value of the estate. Therefore no estate taxes would be calculated on assets that the deceased does not own.