Skip to main content

What is considered inside the taxable estate and outside the taxable estate for EstateFlow?

When it comes to determining whether assets are kept inside or outside the taxable estate, here is how it is organized:

  • If an asset is directly owned by "Client 1" or "Client 2" if linked as the spouse in Client 1 contact card), we automatically include that asset as inside the taxable estate.

  • If an asset is owned by any other individual (someone not linked as Client 1 or Client 2), we assume that asset's value is outside the taxable estate by default.

For Assets Owned by Trusts:

  • The categorization for assets held by trusts is determined by the setting on the trust's contact card.

For Assets Owned by Entities (like an LLC or Partnership):

  • We look at the top-level owner assigned to that entity. If the entity itself is owned by Client 1 or Client 2, then the value of that entity (and the assets it holds) is considered inside the taxable estate. If the entity is owned by a trust, then the value of the entity (and any assets it holds) is based on the categorization in the trust contact card as being inside or outside the taxable estate.

Did this answer your question?