Property that is not given away while the owner is alive becomes estate property at death. Estate property is distributed according to the decedent's will or, in the case of financial products like life insurance, a beneficiary designation. If there is no valid will at death, a decedent's property is distributed according to that state's intestacy laws.

The estate tax is applied to the value of all property owned or controlled by the decedent. It is a progressive tax that begins at 18 percent for the first $10,000 in property, and settles at 45 percent (2009) for estate values exceeding $3.5 million.

It is the estate (as "donor"), not the property recipient, which is liable for payment of the tax. The net federal estate tax is usually payable with the estate tax return, which must be filed (by the estate executor) within nine months of the decedent's death.

Copyright ONFS. Taken from ESTATEPLANNING PowerPoint Presentation, downloadable through ON-Net.

Back to Top | Next

Ohio National is not affiliated with, nor does it endorse or sponsor, any particular prospecting, marketing or selling system.

42