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.

RELATED TERMS
  1. Personal Representative

    The executor or administrator for the estate of a deceased person. ...
  2. Estate Planning

    Estate planning is the preparation of tasks that serve to manage ...
  3. Estate Tax

    An estate tax is levied on an heir's inherited portion of an ...
  4. Estate

    The collective sum of an individual's net worth, including all ...
  5. Real Estate

    Real estate is property made up of land as well as anything on ...
  6. Intestate

    Intestate refers to dying without a legal will. When a person ...
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. Investing

    Real Estate Vs. Stocks: Which One's Right For You?

    There are ups and downs for both real estate and stock investments, so before diving in, know the differences between the two.
  3. Investing

    Add Some Real Estate To Your Portfolio

    From investing in REITs to owning your own home, find out how to diversify your portfolio with real estate assets.
  4. Investing

    The Risks Of Real Estate Sector Funds

    Discover the risks and rewards of investing in real estate funds, as well as some of the best and worst performers.
  5. Investing

    A Guide to Real Estate Investing

    Investing in real estate is a popular choice for good reasons, but it's more complicated than owning your typical stocks and bonds.
  6. Investing

    4 Key Factors That Drive the Real Estate Market

    Whether you are investing directly or indirectly in property, you need to know the factors that affect its value.
  7. Investing

    The 10 Habits of Highly Effective Real Estate Investors

    All successful real estate investors share these personal and professional traits, while following these business practices.
  8. Financial Advisor

    States With the Highest Inheritance/Estate Taxes

    State and federal estate taxes may be levied upon death, but there's a difference between inheritance taxes and estate taxes. Here's what you need to know.
  9. Retirement

    Estate Planning Law Changes You Need To Know

    When organizing your affairs, you'll need to be aware of tax rates and other regulations.
  10. Managing Wealth

    How Executives Should Approach Estate Planning

    Estate planning can be more complex for executives who have substantial assets.
RELATED FAQS
  1. What is estate planning?

    Estate planning involves making plans for the transfer of your estate after death. Your estate is all the property that you ... Read Answer >>
Hot Definitions
  1. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
  2. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  3. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ...
  4. Internal Rate of Return - IRR

    Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
  5. Limit Order

    An order placed with a brokerage to buy or sell a set number of shares at a specified price or better.
  6. Current Ratio

    The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations.
Trading Center