Do all estates pay federal estate taxes?
No. The federal government has given every person in the United States an exemption for estate tax purposes. Presently, the exemption is $700,000, with a planned gradual increase to $1,000,000 in the year 2006. This means that if your estate is less than the exemption amount at the time of your death, there will be no federal estate taxes due. In deciding whether your estate is greater than or less than the exemption, the government includes everything you own, including the face value of your life insurance policies.
No. The federal government has given every person in the United States an exemption for estate tax purposes. Presently, the exemption is $1,000,000 in 2001 with a planned gradual increase to $2,000,000 in 2006. That means if your estate at the time of your death is less than the exemption, there will be no federal estate taxes due. In deciding whether your estate is greater than or less than the exemption, the government includes everything you own, even the face value of your life insurance policies.
