Which term refers to the total estate that may be subject to estate taxes before deductions and credits?

• A. Portable
• B. Taxable Estate
• C. Credit Shelter Trust
• D. Unlimited Marital Deduction

Answer: (B)

The concept being tested is the value of the estate that the tax will be applied to in the estate tax calculation. In the framing of this question, that starting point is called the taxable estate. It represents the portion of the estate that is subject to estate tax before applying any credits. After determining this amount, deductions (like debts, funeral expenses, and charitable gifts) and exemptions reduce the base, and credits then reduce the tax liability further. The other terms are planning tools or provisions that affect how much tax is ultimately paid, not the initial base for taxation: portable relates to a spouse’s unused exemption, credit shelter trust is a vehicle to preserve exemptions, and the unlimited marital deduction allows transfers to a spouse without immediate tax.