Wills, Trusts, and Estates: What are Estate Taxes?

The Estate Tax is a federal tax and/or state tax (depending on which state you live in) on the right to transfer property at the time of death. The definition of Property subject to the Estate Tax, includes the fair market value of everything owned or the interest possessed at the time of death. This is called the Gross Estate and may include cash, securities, real estate, insurance, trusts, annuities, business interests and other assets. The tax applies to property that is transferred by will or, if the person has no will, then according to the state laws of intestacy.