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 New Hampshire, as in all states, the federal estate tax applies to the transfer of property at death. The tax is based on the gross estate, which includes all assets owned or interests held by the deceased at the time of death, valued at their fair market price. As of the knowledge cutoff in 2023, the federal estate tax exemption is significantly high, meaning that only estates exceeding a certain value are subject to the tax. For individuals who passed away in 2023, the federal estate tax exemption is $12.92 million, so estates under this amount are not subject to federal estate tax. It's important to note that New Hampshire does not impose a state-level estate or inheritance tax. Therefore, for estates that do not exceed the federal exemption amount, there would be no estate tax liability at the state or federal level. However, estates exceeding the federal exemption amount would be subject to federal estate tax, and the estate's executor would be responsible for filing the necessary tax returns and paying any taxes due.