The federal estate tax is a tax on your right to transfer property at your death—whether by will or intestate succession (transfer to heirs when a person dies without a will, as provided by state statute). The estate tax consists of an accounting of everything you own or have certain interests in on the date of your death.

The fair market value of these items is used—not necessarily what you paid for them or what their values were when you acquired them. The total of all your assets at death is your "gross estate." The property included in your gross estate may consist of cash and securities, real estate, insurance, trusts, annuities, business interests and other assets.

In Maine, the federal estate tax applies to the transfer of property at death, including transfers by will or intestate succession. The tax is based on the gross estate, which encompasses all assets owned or interests held by the deceased at the time of death, valued at their fair market value. This includes cash, securities, real estate, insurance, trusts, annuities, business interests, and other assets. As of the knowledge cutoff in 2023, the federal estate tax exemption is set at a level that exempts most estates from owing any federal estate tax. However, estates exceeding the exemption amount are subject to the tax at graduated rates. It's important to note that Maine also has its own estate tax, separate from the federal tax, with its own exemption threshold and rates. Individuals with significant assets or those seeking estate planning advice should consult with an attorney to understand the specific implications of both federal and state estate taxes on their estate.