An estate tax is a levy on the estate of a deceased person, based on the value of the property left by the deceased. The tax is typically calculated based on the market value of the estate either at the date of death or six months afterward, taken at the lower value if applicable.
A federal tax levied on the transfer of any property or assets from one individual to another without receiving anything (or less than the market value) in return. The tax primarily affects larger gifts and can intersect with estate tax considerations.
The tax-free amount transferred to one’s spouse upon death, allowing unlimited transfers without federal estate tax.
