How the Estate Tax Works

Platinum Law Group and David Gomez handle estate planning and bankruptcy cases in Baltimore, Maryland, and the surrounding area. David Gomez and Platinum Law Group work to minimize the impact of the federal estate tax for their clients.

An estate tax accounts for all things a party owns at the time of death as well as certain other financial interests. These items are given their current fair market value and totaled to become the gross estate. 

Insurance, trusts, business interests, real estate, cash on hand, and other assets are subject to the federal estate tax. Most taxable estates are small enough that no estate tax return needs to be filed. As of 2018, an estate tax return should be filed only if the estate has combined gross assets and taxable gifts worth more than $11,180,000.