What is the value of an estate?

The value of an estate in Maryland includes any assets owned by the deceased person at the time of their death. These assets could include real estate, stocks and bonds, vehicles, jewelry, antiques, artwork, and other personal property. The value of these assets can be determined through their market value, which is the amount they would have fetched if sold on the open market. All debt belonging to the deceased also needs to be deducted from the total estate value. It is important to note that the value of an estate is determined by its fair market value, which is the amount it would have fetched had it been sold at the time of death. It is not the same as the value the estate owner placed on the asset during their lifetime. This means that sentimental value and emotional value are not included in the evaluation. In addition to assets owned by the deceased, any gifts or bequests they made prior to their death will also be included in the estate value. However, the value of these items will need to be determined at the time they were gifted or bequeathed. The value of an estate is essential in understanding the amount of Inheritance Tax that will need to be paid by the heir or beneficiaries of the will. Inheritance Tax is a state-level tax and will depend upon the total value of the estate, as well as who will receive the assets or cash. The estate executor will need to determine the value of the estate in order to accurately calculate the amount of Inheritance Tax that is due.

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