How to Determine When Estate Tax is Due

To determine the value of your estate, add up the current value of every asset you own and subtract the value of mortgages and other debts. Add to this number the value of taxable gifts made, and find your total. If this amount exceeds $2 million, then you will be liable for estate tax upon your death, which is the tax on your right to pass your property to your inheritors. Your estate tax is not payable by you, however, but by your estate at the time of your death. Your executor will be responsible for paying the estate tax from the value of your whole estate.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Internet access
• Tax information

Determine When Estate Tax Is Due

1. Visit the IRS Web site to confirm the time allotted to pay the estate tax. Generally, it is due nine months after the date of death.

Tips & Warnings

• Calculate your estate’s value early so you will know if you need to worry about taxes being due after your death.
• If you have to pay estate taxes upon your death, you may want to add an insurance policy to cover the value of the tax.
• Check with your state to find out if additional state taxes are due and plan for those as well.