2 Estate Tax

U.S. Tax Law Essentials · 3:24

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Lyrics

[Verse 1]
When someone passes away, the taxman comes to play
Looking at the gross estate, what's included on that day
Twenty thirty one through forty six, the sections tell the tale
Of property that's counted up when life has come to fail

[Chorus]
Estate tax computation, with the unified credit too
Marital and charitable deductions help you through
DSUE portability, remember this refrain
The unused exclusion follows when a spouse has died in vain

[Verse 2]
Revocable transfers, that's section thirty eight
Retained interests thirty six, sealed by your estate's fate
Joint interests forty, life insurance forty two
Powers of appointment, forty one will see you through

[Chorus]
Estate tax computation, with the unified credit too
Marital and charitable deductions help you through
DSUE portability, remember this refrain
The unused exclusion follows when a spouse has died in vain

[Verse 3]
Sixty one sixty six lets business owners wait
Deferring tax on closely held when it's their time to pay
Twenty thirty two A gives farms a special break
Valuation at current use, not what developers would take

[Bridge]
Step up basis at death, ten fourteen is the key
Cost basis jumps to fair value for the heir's property
Planning opportunities arise when assets change their base
Tax strategies unfold in this inherited space

[Verse 4]
Debts and expenses lower what the government will take
Twenty fifty five and fifty six, deductions you can make
Charitable gifts reduce the tax, marital ones do too
Unlimited between the spouses, that's the golden rule

[Chorus]
Estate tax computation, with the unified credit too
Marital and charitable deductions help you through
DSUE portability, remember this refrain
The unused exclusion follows when a spouse has died in vain

[Outro]
From gross estate to final tax, these rules will guide your way
Estate planning starts today for your eventual final day

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