Reference no: EM13389285

1. Funeral expenses are deductible either on the federal estate tax return or on the decedent's last income tax return.

2.Executors' commissions are considered to be costs of administering property that are included in a decedent's gross estate and are, therefore, deductible from the gross estate.

3.Unpaid mortgages on property included in the gross estate for which the decedent was liable are allowable as deductions from the gross estate in arriving at the adjusted gross estate.

4.Expenses in the administration of nonprobate assets are deductible if incurred on behalf of assets includible in the gross estate.

5.There are certain deductions that may be taken on either the federal estate tax return or the estate's income tax return.

6.The maximum marital deduction is the greater of $250,000 or one-half of the adjusted gross estate.

7.The estate tax marital deduction is allowed on the full gross estate tax value of the property left to the spouse, regardless of whether taxes, mortgages, or administration expenses are payable out of the marital interest.

8.The marital deduction will be reduced if taxes are payable out of the marital share of the estate.

9.Both the decedent and the surviving spouse must be citizens of the United States for transfers to such survivor to qualify for a marital deduction.

10.Only probate property qualifies for the marital deduction.