What is excluded from the Estate?
Generally, the Gross Estate does not include property owned solely by the decedent’s spouse or other individuals. Lifetime gifts that are complete (no powers or other control over the gifts are retained) are not included in the Gross Estate (but taxable gifts are used in the computation of the estate tax). Life estates given to the decedent by others in which the decedent has no further control or power at the date of death are not included.
Generally, the gross estate does not include property owned solely by the decedent’s spouse or other individuals. Lifetime gifts that are complete (no powers or other control over the gifts are retained) are not included in the gross estate (but taxable gifts are used in the computation of the estate tax). Life estates given to the decedent by others in which the decedent has no further control or power at the date of death are not included. What deductions are available to reduce the estate tax? • One of the primary deductions for married decedents is the marital deduction. All property that is included in the gross estate and passes to the surviving spouse is eligible for the marital deduction. The property must pass “outright.” In some cases, certain life estates also qualify for the marital deduction. • Charitable Deduction: If the decedent leaves property to a qualifying charity, it is deductible from the gross estate. • Mortgages and debt. • Losses during estate administration. •
Generally, the Gross Estate does not include property owned solely by the decedent’s spouse or other individuals. Lifetime gifts that are complete (no powers or other control over the gifts are retained) are not included in the Gross Estate (but taxable gifts are used in the computation of the estate tax). Life estates given to the decedent by others in which the decedent has no further control or power at the date of death are not included. What deductions are available to reduce the Estate Tax?
· Haram wealth · Rahn or collateral. The deceased took a loan and placed an item as collateral. If there are not sufficient funds to release the collateral, that will be excluded from the estate. For example, I take a loan of R 1 million from you and place my house as collateral. If the estate cannot release the house, the house will be excluded from the estate. In this, the appropriate ruling of Shariah will be considered after observing all the laws of Rahn. · Insurances and endowment policies are Haram. They have elements of interest and gambling in them and they are not recognized as valid ownership in Shariah. They will be excluded from the estate. The proceeds of such policies should be given in Sadaqah to the poor and needy. · Government pension funds will be excluded from the estate if the payout was after the death of the subscriber. If the Government paid the subscriber during his lifetime, then that payout will form part of the estate. Burial Expenses: · All burial expenses
