Estate tax is the levy by the government against the taxable estate of a deceased person. Taxable estate means gross estate reduced by allowable deductions. Gross estate means total estate comprising the value of all assets owned by the deceased at the time of death. IRS determines taxable estate by subtracting from gross estate certain allowable deductions like funeral expenses paid out of the estate, debts outstanding at the time of death, estate administration expenses, charitable, marital, and deductions

The assets are valued at their