What term describes the total value of a decedent's assets before deductions are subtracted?

• A. Net estate
• B. Deductions
• C. Gross estate
• D. Lifetime exemption

Answer: (C)

Gross estate refers to the total value of the decedent's assets at death before any deductions are subtracted. It captures everything the person owned or had an interest in, valued at fair market value as of death, including both probate and certain nonprobate assets. From this starting point, deductions such as debts, funeral and administrative expenses, and certain exemptions are subtracted to determine the taxable or net estate.

The other terms describe later stages or different concepts: the net estate is what remains after deductions; deductions are the amounts subtracted; and the lifetime exemption is the amount exempt from tax, not the total asset value.