Gross Estate
What Does Gross Estate Mean?
A gross estate refers to the total value of all personal and real property owned by a person at the time of their death. This includes assets such as real estate, investments, bank accounts, and personal belongings. The value of the gross estate is used to calculate the estate tax owed to the government. Life insurance policy proceeds payable to the decedent’s estate are typically included in the gross estate calculation as well.
Insuranceopedia Explains Gross Estate
Life insurance proceeds are generally exempt from income tax. However, since they are included in the gross estate calculation, they may be subject to estate tax.
In addition to life insurance proceeds, many other assets can be included in the gross estate calculation. These can include real estate (such as houses), personal property (such as cars, paintings, jewelry, musical instruments), bank accounts, precious metals, digital currencies, and more. The larger the estate, the higher the estate tax liability, as estate taxes are typically based on the total value of the gross estate.
