The Death Tax (a.k.a., the federal estate tax) is a tax on life-savings.  It is owed by anyone who saves a certain amount of money throughout their life and leaves it to their heirs upon death. 

     Under current U.S. law, all life-savings above a $2 million "exclusion" are subject to an estate tax rate of 45%.  Both the exclusion and the rate are subject to change in coming years (see “The Current Fight” for more information).

     The Death Tax is paid by the recipients of an inheritance – most often family heirs – and is due within 9 months of the decedent’s death.   

     The Death Tax is imposed on any form of wealth saved throughout one’s life.  This includes business assets (property, machinery, inventory and payroll) and homes, which sometimes must be sold to pay the tax if the heir does not have sufficient cash.   See "Why Kill the Death Tax" for more information.

     The U.S. Death Tax was imposed in 1916 to help pay the costs of World War I.  That war ended ninety years ago, but the tax remains.