Estate Taxes

Estate taxes are taxes imposed on the total value of a deceased person's assets before they are distributed to heirs. When someone passes away, their assets—such as money, property, and investments—are assessed for tax purposes. If the total value exceeds a certain threshold set by law, the estate must pay taxes on the amount above that limit. This tax is typically paid from the estate’s assets, not by the heirs directly. Various deductions and exemptions may apply, which can reduce the taxable amount. Estate taxes help fund government services and programs.