What property is subject to estate taxation?
All of your property is included in your gross estate for federal estate tax purposes upon your death. The gross estate for federal estate tax purposes will also include any life insurance proceeds payable as a result of your death to the extent you own any rights in the policies, retirement benefits, and other property that you have transferred (as a gift) during your lifetime, if you have retained rights to receive benefits from the property or impermissibly control the transferred property. This would include any property you have placed in a living trust for your own benefit. In addition, the gift tax values of any taxable gifts made by you after 1976 will be added to the value of the property included in your estate in determining the amount of estate taxes. In other words, the concept of an “estate” for estate taxation is much broader than the probate estate (the portion that your will controls). Taxes are imposed upon your property regardless of whether it passes under your will
