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SOI Tax Stats - Nonresident Alien Estate Tax Study Terms and Concepts

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This page contains information about selected terms and concepts used in SOI's nonresident alien tax articles and tables.

Please visit Nonresident Alien Estate Tax Statistics to access these articles and tables.



Adjusted taxable estate
Location: Page 1, Part II, Line 3
Definition: The adjusted taxable estate is the sum of decedent’s taxable estate (as calculated in Schedule B) and the amount of taxable gifts made by the decedent prior to 1977.  The adjusted taxable estate reflects deductions taken against the gross estate.

Adjusted taxable gifts are gifts of tangible or intangible property located in the United States andmade during the life of an individual who died before 1982 that were automatically included in the gross estate.  However, for the estate of an individual who died after 1981, these gifts were not generally included inthe gross estate.  Instead, they were added to the taxable estate, creating the "adjusted taxable estate" for the purposed of determining the "estate tax before credits."

All deductions
Location: Page 2, Schedule B, Line 8
Definition: All Deductions is the sum of the deductions allowed for funeral and administrative expenses; debts, mortgages, and other claims against the estate; charitable deductions; and marital deductions.

All other assets
Location: Page 2, Schedule A; attachments
Definition: This asset category includes items that cannot be assigned to one of the other asset categories, such as precious metals and household or personal items like furniture, clothing, jewelry, and automobiles. 

Attorneys' fees
Location: Page 2, Schedule B, Line 4
Definition: Fees that have been paid to attorneys for work on behalf of the estate, or amounts that can reasonably be expected to be paid, may be claimed as a deduction against the value of the estate.

Bonds
Location: Page 2, Schedule A; attachments
Definition:  Bonds includes federal, state, and local government bonds, as well as mutual funds comprising primarily these types of bonds.

Cash assets
Location: Page 2, Schedule A; attachments
Definition: Cash assets includes cash, cash management accounts, other banking- or checking-type accounts held in brokerage accounts, as well as mortgages and notes.

Charitable deduction
Location: Page 2, Schedule B, Line 6
Definition: An unlimited charitable deduction is available for all outright transfers to qualified charities.  The deduction is available for gifts to trust only if the trust meets certain requirements.

Executors' commissions
Location: Page 2, Schedule B, Line 4
Definition: An executor is the individual or institution nominated in a will and appointed by a court to administer estate property, pay the debts left by the deceased, and to distribute estate property as the deceased directed.  Executors are entitled to get paid for their services; some executors take this fee or "commission", while others do not.  If taken, the commission may be claimed as a deduction against the value of the estate. 

Funeral expenses
Location: Page 2, Schedule B, Line 4
Definition: Expenses related to the funeral and burial of the decedent may be claimed as a deduction against the value of the estate.

Gross estate tax
Location: Page 1, Part II, Line 6
Definition: The gross estate tax is calculated by applying the graduated tax rates to the decedent’s adjusted taxable estate, reduced by the amount of Federal gift taxes previously paid.  It is a tentative tax amount, before any credits are taken into account to reduce the amount.

Marital deduction
Location: Page 2, Schedule B, Line 6
Definition: This is equal to the value of property interests passing from the decedent to the surviving spouse and is taken as a deduction from the “worldwide” total gross estate.  Unless an estate tax treaty allows otherwise, the marital deduction is allowed only if the surviving spouse was a U.S. citizen or if the property passed to a qualified domestic trust described in IRC section 2056A.

Mixed mutual funds
Location: Page 2, Schedule A
Definition: This category comprises funds which contain assets that are not identified.  Therefore, this category may include stock, bonds, and other types of assets all held in mutual funds.

Net estate tax
Location:  Page 1, Part 2, Line 12
Definition:  The estate’s tax liability after credits for State death taxes, foreign death taxes, tax on prior transfers, and Federal gift taxes previously paid were subtracted from gross estate tax.  In addition to these credits, a "unified credit," graduated according to the year of death and a "credit" for gift taxes paid on post 1976 gifts, is allowed (see also "unified credit").

Other credits
Location: Page 1, Part II, Line 11
Definition: Other credits includes the credit for federal gift taxes and the Canadian marital credit reported on Line 9, as well as credits for taxes on prior transfers reported on line 10.

Other debt
Location: Page 2, Schedule B, Line r
Definition: Other debt includes any valid debts owed by the decedent at time of death, including mortgage expenses, unpaid bills and taxes accrued prior to death.

Other expenses
Location: Page 2, Schedule B, Line 4
Definition: Various administration expenses incurred in preserving and administrating the estate may be claimed as a deduction.  These expenses include appraiser's fees, certain court costs, and costs of storing or maintaining assets of the estate.  

Real estate
Location: Page 2, Schedule A; attachments
Definition: Real estate includes the value of all real estate, real estate partnerships, mutual funds composed primarily of real estate assets, as well as real estate investment trusts (REITs).

State death tax deduction
Location: Page 2, Schedule B, Line 7
Definition: Decedents who died in 2005 or later are allowed a deduction for estate, legacy, or succession taxes actually paid to any state or the District of Columbia as a result of the decedent’s death.

Stock
Location: Page 2, Schedule A; attachments
Definition: Stock includes corporate stock, stock in closely held corporations, mutual funds composed mostly of stock, as well as futures, options, puts and calls.

Tax status
Location: Page 1, Part 2, Line 16
Definition:  Returns can be either taxable or nontaxable, as determined by the balance (or refund) due.  Taxable returns were those with estate tax liability after credits; nontaxable returns were those with no estate tax liability after credits.

Taxable estate
Location: Page 2, Schedule B, Line 9
Definition:  Taxable estate is the base to which the graduated Federal estate tax rates are applied in computing the estate tax before credits.  Taxable estate is equal to the value of the U.S.  total gross estate less deductions for the following: funeral and administrative expenses (prorated by the amount of the estate located within the U.S.); debts, mortgages, and other claims against the estate (also prorated by the amount of the estate located within the U.S.); charitable deductions; and marital deductions.

Total gross estate, outside the U.S.
Location: Page 2, Schedule B, Line 2
Definition: The value of all assets not deemed to be located within the U.S., and therefore not subject to taxation.

Total gross estate, U.S. estate tax purposes
Location: Page 2, Schedule B, Line 1
Definition: The value of all assets held within the U.S.  Assets may be valued at the date of death, or at an alternative date up to six months thereafter (the alternative value).

Total gross estate, worldwide
Location: Page 2, Schedule B, Line 3
Definition: The value of all assets held by the decedent at time of death, regardless of where they were located.  It is calculated as the sum of the decedent’s gross estate within the U.S, as well as the gross estate outside the U.S.

Unified credit
Location: Page 1, Part 2, Line 7
Definition:  The unified credit, so called because it is used for both estate and gift tax purposes, is applied as a dollar-for-dollar reduction of the estate tax.  (The unified credit represents the amount of tax on that part of gross estate that is below the filing requirement.)  The maximum statutory unified credit amount varies based on if the decedent was domiciled in a treaty country or not; non-treaty decedents’ maximum unified credit amount is $13,000.

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Page Last Reviewed or Updated: 28-Jan-2014