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Estate
by Desideridella Propriete
http://www.estatewishes.com

Estate is a legal term used for everything that a person
owns. Estate is often used in the context of will and
probate. It compromises the total assets of a person,
whether real property or personal property and his
entitlements, obligations and liabilities. It is the
property left behind by the person when he dies. Estate can
also be used in reference to extensive landed property and
retained by the owner for his own use. It may comprise of
the house and outbuildings and supporting farmland and
woods that surround the grounds of a very large property.

To determine a person's estate and its value, assets and
liabilities are appraised to determine his net estate. The
valuables may include cash, investments, retirement
accounts, car, household items, business interests, real
estate, precious objects, antiques, personal effects and
other touchable items. It also includes untouchable
property such as stock and bank accounts owned by a person
at the time of his passing. However, it does not include
life insurance payments unless the estate was made a
beneficiary in the assets or other assets that are outside
the estate like joint tenancy assets.

After determining a person's assets, his outstanding debts
such as income taxes, loans, or other obligations, in
addition to any legal fees for settling or selling the
estate are subtracted from the gross value of the estate to
reach a net value of the estate. If the net amount of
estate left is greater than the amount a person can leave
to his heirs then it is a taxable estate and an individual
is liable to pay federal estate tax due to him.

The amount of taxable estate depends upon the state
in which person lives because there
may be additional state tax as well. Therefore specific
planning is necessary to ensure that assets passes in an
orderly and efficient manners to his legal heirs upon the
death of the owner. For this a person can opt for estate
planning.

A person will make a will, set up a trust and insurance,
establish all power of attorneys needed and attempt to
minimize taxes and administrative expenses. An estate may
be subject to a higher tax rate higher than income tax. By
estate planning a person can reduce their estates value
through strategies. These can include nontaxable gifts and
establishing irrevocable trusts. If a person is married to
a US citizen they can also leave the estate to their
spouse. In this case there is no estate tax to be paid. The
spouse is simply given the estate, paying no taxes
regardless of the value.

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