How is an estate taxed for federal estate tax purposes?
If the value of all assets owned by you (net of deductions) exceeds your available “unified credit,” then federal estate tax must be paid. The federal estate tax rates begin at 18% and increases to 50%. Your taxable estate includes everything you own, no matter how you own it. The amount that each individual can distribute, without paying an estate or gift tax, is called the “applicable credit amount.
