The estate tax has gotten a lot of press this year because, well, it doesn’t exist this year and Congress is set to discuss what they want to do with it, along with tax rates, in subsequent years.
However, before we get into that, let’s get back to basics – what is the estate tax? The estate tax is a tax imposed on the transfer of an estate. That is, it’s a tax on assets when someone dies and transfers those assets to others. It’s imposed by the federal government and oftentimes by the state government as well, which can refer to it as an estate tax or an inheritance tax. No matter what you call it, or how you feel about it in terms of fairness, it’s a tax that has been collected for years and is a source of revenue to federal and state governments.
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