Estate Tax: What It Is And How It Is

Estate Tax: What It Is And How It Is Filed

According to the Internal Revenue Service (IRS), an Estate Tax is a tax that is imposed on your right to transfer your property and belongings after your death. The individual who is in charge of handing and filing an Estate Tax return is often the estate representative. An estate representative can be a family attorney or a family member who was declared the executor of an estate in a will. When dealing with an Estate Tax, there are number of things that an individual or family must do when preparing to deal with the Internal Revenue Service (IRS).

There are certain restrictions for estates that are subject to the Estate Tax. Each year tax laws are updated or completely changed; therefore, estate representatives or family members are encouraged to review the new Estate Tax laws. At the current time, the majority of estates are not subject to an Estate Tax if they are valued at less than one million fifty thousand dollars. The Estate Tax value is expected to increase up to two million dollars for the 2006 year. In addition to meeting a certain estate value, it is also likely that the majority of properties that are...