Final answer:
Certain asset categories are typically exempt from estate administration tax calculations, such as named life insurance proceeds, retirement accounts, jointly owned property, and trust-held property. The U.S. estate tax mainly affects large inheritances over $5.43 million.
Step-by-step explanation:
The calculation of estate administration tax typically excludes certain categories of assets. These exclusions can vary depending on jurisdiction but often include life insurance proceeds where a beneficiary is named, retirement accounts like IRAs and 401(k)s, jointly owned property with right of survivorship, and sometimes property held in certain types of trusts. In addition, the United States estate tax applies only to significant inheritances - for instance, in 2015, it was only imposed on estates larger than $5.43 million, per the Center on Budget and Policy Priorities. This means that for the vast majority of people, their estates might not be large enough to trigger the estate tax.