What is a transfer of wealth that is subject to estate tax?

The correct answer pertains to assets exceeding the estate tax exemption because the estate tax is assessed on the value of a decedent's estate, which is the total value of all assets and property owned at the time of death. In the United States, individuals have an estate tax exemption amount that allows them to transfer a certain value without incurring an estate tax. Any value over this exemption threshold is subject to taxation under the estate tax when the individual passes away. Therefore, only those assets that exceed the exemption limit will trigger the estate tax and represent a transfer of wealth that is subject to this specific tax liability.

Other options, while related to the concept of wealth transfer, do not directly relate to being subject to estate tax in the same manner. For example, gifts made during the lifetime of the giver can be subject to gift tax but do not trigger estate tax directly since estate tax applies upon death. Property sold below market value might involve different tax implications such as potential capital gains tax but is also not necessarily subject to estate tax unless it exceeds the exemption upon the decedent’s death. Lastly, while all assets transferred between family members might be important for estate planning, not all transfers are subject to estate tax unless they are counted within the estate valuation and