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. Estate Planning

    The collection of preparation tasks that serve to manage an individual's ...
  4. Will

    A legally enforceable declaration of how a person wishes his ...
  5. Estate

    All of the valuable things an individual owns, such as real estate, ...
  6. Asset

    1. A resource with economic value that an individual, corporation ...
RELATED FAQS
  1. How can a trust lower federal transfer tax liability?

    A trust is an arrangement in which an individual or entity controls property or funds on behalf of someone else without actually ...
Related Articles
  1. Retirement

    What Is A Will And Why Do I Need One?

    Putting this document together will save your family time and money, and give you peace of mind.
  2. Options & Futures

    How To Avoid Taxation On Life Insurance Proceeds

    Decrease the value of your taxable estate and prevent the tax man from getting you one last time.
  3. Options & Futures

    Getting Started On Your Estate Plan

    With some preparation, you can save your heirs from paying a hefty estate tax. Here are some tips.
  4. Options & Futures

    Three Documents You Shouldn't Do Without

    Estate planning is not just about the division of assets after you die. Read on to save your loved ones extra grief.
  5. Taxes

    A Look At The Generation-Skipping Transfer Tax

    For those who encounter this tax, it can be costly. Find out how to navigate this complicated tax arrangement.
  6. Retirement

    Mistakes In Designating A Retirement Beneficiary

    Make sure your beneficiary designations not only reflect your intentions but also meet the requirements to be effective.
  7. Retirement

    Saving Money With A Private Annuity Trust

    Learn about a strategy that could help you reduce taxes, diversify your portfolio and generate income.
  8. Professionals

    Estate Planning Tips for Financial Advisors

    Estate planning is not a set-it-and-forget-it proposition. Here are some tips for you and your clients.
  9. Personal Finance

    What's an Irrevocable Trust?

    In an irrevocable trust, the grantor gives up the right to revise, amend or terminate the trust without the permission of the beneficiary. An irrevocable trust is best used as an estate-planning ...
  10. Investing Basics

    How Advisors Can Protect Inherited IRAs

    A new Supreme Court ruling has some financial advisors rushing to set up trusts to help protect inherited IRAs. Is that necessary?

You May Also Like

Hot Definitions
  1. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  2. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  3. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  4. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  5. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
  6. Irrevocable Trust

    A trust that can't be modified or terminated without the permission of the beneficiary. The grantor, having transferred assets ...
Trading Center