Gross Estate

AAA

DEFINITION of 'Gross Estate'

The total dollar value of all property and assets in which an individual had an interest at the time of his or her death. The gross estate figure is the gross value of a person's estate before liabilities such as debt and taxes are deducted. When a person dies, the executor or executress of the estate performs an assessment of the assets belonging to the deceased including real property, stocks, bonds, other investments and personal property. The gross estate figure is commonly produced for federal income tax purposes, and is the figure from which liabilities will be deducted to determine the net estate value.

INVESTOPEDIA EXPLAINS 'Gross Estate'

After the executor or executress of the estate determines the gross estate value, liabilities - including outstanding debt, funeral expenses, taxes and administrative costs - are deducted to compute the net estate value. The net estate is the remainder of the estate that will be divided amongst any beneficiaries according to the last will and testament of the deceased. A last will and testament is a legal document that names an executor or executress of the estate and provides specific directions for handling a person's last wishes regarding assets and beneficiaries.

RELATED TERMS
  1. Form 706-NA: United States Estate ...

    A tax form distributed by the Internal Revenue Service (IRS) ...
  2. Estate Tax

    A tax levied on an heir's inherited portion of an estate if the ...
  3. Will

    A legally enforceable declaration of how a person wishes his ...
  4. Asset

    1. A resource with economic value that an individual, corporation ...
  5. Heir

    HeirA person who inherits some or all of the estate of another ...
  6. Liability

    A company's legal debts or obligations that arise during the ...
Related Articles
  1. What Is A Will And Why Do I Need One?
    Retirement

    What Is A Will And Why Do I Need One?

  2. How To Avoid Taxation On Life Insurance ...
    Options & Futures

    How To Avoid Taxation On Life Insurance ...

  3. Getting Started On Your Estate Plan
    Options & Futures

    Getting Started On Your Estate Plan

  4. Three Documents You Shouldn't Do Without ...
    Options & Futures

    Three Documents You Shouldn't Do Without ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center