Gross Estate
What Does Gross Estate Mean?
A gross estate is the total amount of personal and real property that a person owns at the time of his or her death. This value of the property is used to calculate the estate tax that is owed to the government. Life insurance policy proceeds payable to the decedent's estate are typically included in the gross estate calculation.
Insuranceopedia Explains Gross Estate
Life insurance proceeds are commonly exempt from income tax. However, because they are included in the gross estate calculation, they can be subject to the estate tax. There are many other things that can be included in a gross estate calculation. For example, houses, cars, paintings, jewelry, bank accounts, musical instruments, precious metals, digital currencies, and more can all be included in the calculation of the gross estate. The larger the estate, the larger the tax amount, generally speaking.
