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 York, the federal estate tax applies to the transfer of property at death, including transfers through a will or according to state intestacy laws when there is no will. The tax is based on the fair market value of the decedent's assets at the time of death, which constitutes the 'gross estate.' This includes a variety of assets such as cash, securities, real estate, insurance, trusts, annuities, and business interests. For 2023, the federal estate tax exemption is $12.92 million per individual, 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 New York State also imposes its own estate tax, separate from the federal tax, with an exemption amount that is lower than the federal exemption. As of 2023, the New York State estate tax exemption is $6.11 million. Estates exceeding this amount may be subject to New York estate tax, even if no federal estate tax is due. Individuals with significant assets may benefit from consulting with an attorney to navigate estate planning and potential tax implications.