Estate tax

An estate tax is a levy on estates whose value exceeds an exclusion limit set by law. Only the amount that exceeds that minimum threshold is subject to tax. Assessed by the federal government and about a dozen state governments, these levies are calculated based on the estate’s fair market value, rather than what the deceased originally paid for its assets. The tax is levied by the state in which the deceased person was living at the time of their death—Read more at Investopedia. Kagan, Julia. “Coverdell Education Savings Account (ESA).” 22 July 2019