Taxes imposed by the United States Government on the value of a person's estate at death.
The amount of Federal Estate Tax that a person's estate may have to pay varies according to laws passed by Congress. The Federal Estate Tax rate for individual citizens is 45% on any amount beyond the exemption. In 2008, the exemption amount was $2 million, in 2009 it was $3.5 million, and then the estate tax was set to be repealed in 2010. In 2011 the estate tax tax was reinstated with an exemption amount of $1 million, unless Congress passes a new law.
For example, for a person that died in 2008 with an estate worth $2,500,000, the taxable amount would be $500,000. If that same person died in 2009, there would have been no federally taxable estate.
Some states also have a state estate tax or inheritance tax.