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 Minnesota, the federal estate tax applies to the transfer of property at death, including transfers through a will or intestate succession. The tax is based on the fair market value of the decedent's assets at the time of death, which collectively make up the 'gross estate.' This may include cash, securities, real estate, insurance proceeds, trusts, annuities, business interests, and other assets. As of the knowledge cutoff in 2023, the federal estate tax exemption amount is $12.92 million for individuals, meaning that estates valued below this threshold are not subject to federal estate tax. Amounts above this exemption are taxed at progressive rates. It's important to note that Minnesota also has its own state estate tax, with different exemption levels and rates from the federal tax. Therefore, estates in Minnesota may be subject to both federal and state estate taxes depending on their value. Individuals concerned about estate tax implications should consult with an attorney to understand the specific tax liabilities and planning strategies that may apply to their situation.