Tax exposure on an estate.
A worked example
Starting figures
- Estate value
- $3,200,000
- Nil-rate threshold
- $2,000,000
- Rate above threshold
- 40%
What it returns
- Estimated tax
- $480,000
- Passed on
- $2,720,000
- Taxable estate
- $1,200,000
- Effective rate
- 15.0%
How to read the results
With the defaults above, estimated tax works out at $480,000.