Rough liability on an estate.
A worked example
Starting figures
- Estate value
- $1,450,000
- Tax-free threshold
- $1,000,000
- Tax rate
- 40%
What it returns
- Estimated tax
- $180,000
- Passed on
- $1,270,000
- Taxable portion
- $450,000
- Effective rate
- 12.4%
How to read the results
With the defaults above, estimated tax works out at $180,000.