ESTATE
TAXATION
GENERAL IDEA
ESTATE TAX
▪ Tax on the right to transmit property at death
▪ Accrues at the time of death of the decedent
▪ Purpose of Estate Tax
a. Raising Revenues
Justification : 1) Benefit Received Theory | 2) Ability to Pay Theory
b. Reduce Social Inequality
Justification : Re-distribution of Wealth Theory
OVERVIEW OF GROSS ESTATE
Gross Estate
Deductions
XXX
XXX
Net Taxable Estate
XXX
Tax Rate
6%
Estate Tax Due
XXX
Tax Credit
XXX
Estate Tax Still Due
XXX
Gross Estate
a. Real Properties
b. Personal Properties
b.1 Tangible Personal Properties
b.2 Intangible Personal Properties
c. Taxable Transfers
C.1 Transfer in Contemplation of Death
C.2 Revocable Transfers
i. Trust
ii. Proceeds of Life Insurance
C.3 Transfer under Power of Appointment
i. General
ii. Limited