What is the homestead allowance? A reduction of $20,000 in estate assets prior to computing the amount of federal estate taxes. The amount of property conveyed in a will to a surviving spouse. An allotment from an estate to a surviving spouse and/or minor and dependent children before any claims are paid. A decrease in the value of property on which state inheritance taxes are assessed. The reduction is equal to the value of property conveyed to a surviving spouse.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 43P
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What is the homestead allowance?

  1. A reduction of $20,000 in estate assets prior to computing the amount of federal estate taxes.
  2. The amount of property conveyed in a will to a surviving spouse.
  3. An allotment from an estate to a surviving spouse and/or minor and dependent children before any claims are paid.
  4. A decrease in the value of property on which state inheritance taxes are assessed. The reduction is equal to the value of property conveyed to a surviving spouse.
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