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 Tennessee, 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 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, trusts, annuities, business interests, and other assets. 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. It's important to note that Tennessee does not impose a state estate tax, as it was phased out and completely eliminated as of January 1, 2016. However, Tennessee residents must still consider federal estate tax regulations when planning their estates. For specific thresholds and rates, and to understand how these rules apply to an individual situation, consulting with an attorney who specializes in estate planning is advisable.