Series 6: 4.3.8. Taxation Of An Estate Account

4.3.8. Taxation of an Estate Account

Recall that an estate account is an account in which the assets of a deceased person are temporarily held while they are in the process of being redistributed to designated beneficiaries. Taxes on an estate are due nine months from the date of death. To get the total value of an estate, which is used when determining taxation, all of its assets must be valued. These assets include houses, other property, investment accounts, insurance policies, annuities, art, furniture, and any assets held in a revocable trust. Then any funeral or administrative costs, any debts owed at the time of death, any charitable gifts made at the time of death, and any deduction passed on to a spouse (marital deduction) are subtracted off.

Taxes will be owed from the estate on any remaining value above $12.06 million in 2022 ($12.92 million in 2023). This is called the lifetime gift tax exclusion or unified credit, and it often changes fro