Taxation of liquidating
The payment may be extended, but not to exceed 12 months, but the return must be filed by the 9-month deadline.As noted above, a certain amount of each estate is exempted from taxation by the law.The estate tax in the United States is a tax on the transfer of the estate of a deceased person.The tax applies to property that is transferred via a will or according to state laws of intestacy.The 2010 Act changed, among other things, the rate structure for estates of decedents dying after December 31, 2009, subject to certain exceptions.It also served to reunify the estate tax credit (aka exemption equivalent) with the federal gift tax credit (aka exemption equivalent).In addition, a maximum amount, varying year by year, can be given by an individual, before and/or upon their death, without incurring federal gift or estate taxes: Certain deductions from the "gross estate" are allowed to arrive at the "taxable estate." The "gross estate" for federal estate tax purposes often includes more property than that included in the "probate estate" under the property laws of the state in which the decedent lived at the time of death.
There are two beneficiaries who will each receive equal shares of the estate.
Whether the personal representative has an obligation to make the portability election is presently unclear.
For estates larger than the current federally exempted amount, any estate tax due is paid by the executor, other person responsible for administering the estate, or the person in possession of the decedent's property.
Other transfers that are subject to the tax can include those made through an intestate estate or trust, or the payment of certain life insurance benefits or financial account sums to beneficiaries.
The estate tax is one part of the Unified Gift and Estate Tax system in the United States.