A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Inheritance TaxA state tax that some heirs pay on the value of property they receive from someone who died.
- Gift TaxA federal tax that may apply when you give away money or property above the annual exclusion amount.
- EstateEverything you own at death, including money, property, and belongings, minus what you owe.
- Irrevocable TrustA trust that usually cannot be changed once created, often used to reduce taxes or protect assets.
- Step-Up in BasisA tax rule that resets an inherited asset's value to its worth at the owner's death, reducing capital gains.
- Net WorthWhat you own minus what you owe — the clearest scorecard of your financial progress.
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Plain-English education — not personalized legal, tax, or investment advice.