If an estate is worth less than $1,500,000 ($3.5M by 2009), no federal estate taxes are due
A person can pass an unlimited amount of property to spouse free of estate taxes, but when that spouse dies, their estate may have to pay estate taxes
The larger the estate, the larger the federal tax rate (45% in 2007)
Federal taxes on estates are paid by the estate, not by the beneficiaries
2006 Federal Estate Tax Rates Note: The federal estate tax exemption is scheduled to remain at $2 million through 2008; to rise to $3.5 million in 2009. The federal estate tax is repealed in 2010 and reinstated in 2011.