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10. Which is true regarding the federal estate tax? A. Federal estate tax is essentially the same as a capital gains tax. B. Federal estate tax is paid out of the value of the estate before the estate is transferred to an heir. C. Federal estate tax will not be paid if the heir is still living. D. There is no way to avoid paying federal estate tax because everyone eventually dies.

Question

10. Which is true regarding the federal estate tax?
A. Federal estate tax is essentially the same as a capital gains tax.
B. Federal estate tax is paid out of the value of the estate before the estate is transferred
to an heir.
C. Federal estate tax will not be paid if the heir is still living.
D. There is no way to avoid paying federal estate tax because everyone eventually dies.

10. Which is true regarding the federal estate tax? A. Federal estate tax is essentially the same as a capital gains tax. B. Federal estate tax is paid out of the value of the estate before the estate is transferred to an heir. C. Federal estate tax will not be paid if the heir is still living. D. There is no way to avoid paying federal estate tax because everyone eventually dies.

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FrancesProfessional · Tutor for 6 years

Answer

B. Federal estate tax is paid out of the value of the estate before the estate is transferred to an heir.

Explain

The federal estate tax is a tax on the transfer of the estate of a deceased person. It is paid out of the estate's value before the estate is transferred to the heirs. It is not the same as a capital gains tax, and there are legal ways to minimize or avoid it.
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