When an individual dies, their assets are usually subject to what are called estate taxes. If an estate is carefully planned, there are ways to minimize those taxes. Effective tax planning can ease the tax burden on surviving loved ones and also be a way to shield generational wealth. The good thing is that people under a certain threshold aren’t liable to pay estate taxes. What is An Estate Tax? Estate taxes also known as death taxes are levied by the federal government and state governments. These assets may include cash, securities, real estate, life insurance, businesses, trusts, or annuities. The fair market value -what they’re worth today- is used when determining taxes on assets. What fair market value means is that the value of those assets may not be the exact amount the deceased paid for them. The total fair value of said assets are referred to as gross estate. To reduce estate taxes, the IRS makes it possible for people to make deductions like debt from a mortgage, estate admin expenses, or property that is inherited by surviving spouses or qualified charities and