{"id":18207,"date":"2026-08-19T17:45:08","date_gmt":"2026-08-20T00:45:08","guid":{"rendered":"https:\/\/familyenterpriseusa.com\/?page_id=18207"},"modified":"2026-08-19T19:59:03","modified_gmt":"2026-08-20T02:59:03","slug":"estate-tax-faq","status":"publish","type":"page","link":"https:\/\/familyenterpriseusa.com\/polling-and-research\/estate-tax-faq\/","title":{"rendered":"Estate Tax FAQ"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; admin_label=&#8221;section&#8221; _builder_version=&#8221;4.27.6&#8243; custom_padding=&#8221;10px||10px||false|false&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row column_structure=&#8221;1_2,1_2&#8243; admin_label=&#8221;row&#8221; _builder_version=&#8221;4.27.7&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;1_2&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_code _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;]<script type=\"application\/ld+json\"><!-- [et_pb_line_break_holder] -->{<!-- [et_pb_line_break_holder] -->  \"@context\": \"https:\/\/schema.org\",<!-- [et_pb_line_break_holder] -->  \"@type\": \"FAQPage\",<!-- [et_pb_line_break_holder] -->  \"mainEntity\": [<!-- [et_pb_line_break_holder] -->    {<!-- [et_pb_line_break_holder] -->      \"@type\": \"Question\",<!-- [et_pb_line_break_holder] -->      \"name\": \"What is an Estate Tax?\",<!-- [et_pb_line_break_holder] -->      \"acceptedAnswer\": {<!-- [et_pb_line_break_holder] -->        \"@type\": \"Answer\",<!-- [et_pb_line_break_holder] -->        \"text\": \"An Estate Tax, or \u201cDeath Tax,\u201d is a federal tax charged on the total net value of a person's property and assets, including those in a family-owned business. It\u2019s paid directly out of the deceased person's estate, with the first $15 million per individual ($30 million for married couples) exempt. Assets above the exemption face federal rates up to 40%.\"<!-- [et_pb_line_break_holder] -->      }<!-- [et_pb_line_break_holder] -->    },<!-- [et_pb_line_break_holder] -->    {<!-- [et_pb_line_break_holder] -->      \"@type\": \"Question\",<!-- [et_pb_line_break_holder] -->      \"name\": \"How do Estate Taxes hurt family-owned businesses?\",<!-- [et_pb_line_break_holder] -->      \"acceptedAnswer\": {<!-- [et_pb_line_break_holder] -->        \"@type\": \"Answer\",<!-- [et_pb_line_break_holder] -->        \"text\": \"Estate Taxes, or \u201cDeath Taxes,\u201d hurt family-owned businesses by forcing heirs to sell company assets, drain operational cash, or disrupt leadership continuity by having to pay large, sudden tax bills within 90 days of the deceased. While federal exemptions reach $15 million per individual ($30 million for married couples), estates above these exemptions could face a 40% tax.\"<!-- [et_pb_line_break_holder] -->      }<!-- [et_pb_line_break_holder] -->    },<!-- [et_pb_line_break_holder] -->    {<!-- [et_pb_line_break_holder] -->      \"@type\": \"Question\",<!-- [et_pb_line_break_holder] -->      \"name\": \"Can Estate Tax policies be reformed?\",<!-- [et_pb_line_break_holder] -->      \"acceptedAnswer\": {<!-- [et_pb_line_break_holder] -->        \"@type\": \"Answer\",<!-- [et_pb_line_break_holder] -->        \"text\": \"Yes, Estate Tax policies can be changed through legislative actions. Changes can be made in baseline exemptions, altering taxable portions of an estate, changing gifting and trust rules, and repealing Estate Taxes, or \u201cDeath Taxes,\u201d altogether. Recent reforms include the permanent $15 million per-person exemption under 2025\u2019s H.R. 1, which demonstrates how lawmakers can reform tax rules with strong advocacy.\"<!-- [et_pb_line_break_holder] -->      }<!-- [et_pb_line_break_holder] -->    },<!-- [et_pb_line_break_holder] -->    {<!-- [et_pb_line_break_holder] -->      \"@type\": \"Question\",<!-- [et_pb_line_break_holder] -->      \"name\": \"Did H.R. 1 lower Estate Taxes?\",<!-- [et_pb_line_break_holder] -->      \"acceptedAnswer\": {<!-- [et_pb_line_break_holder] -->        \"@type\": \"Answer\",<!-- [et_pb_line_break_holder] -->        \"text\": \"Yes, H.R. 1, the 2025 \\\"One Big Beautiful Bill Act,\\\" lowered the Estate Tax by permanently increasing the lifetime federal estate and gift tax exemption. It raised the exemption to $15 million per person ($30 million for married couples) starting in 2026. It also stopped tax cuts from expiring, and set new, higher limits each year based on inflation.\"<!-- [et_pb_line_break_holder] -->      }<!-- [et_pb_line_break_holder] -->    },<!-- [et_pb_line_break_holder] -->    {<!-- [et_pb_line_break_holder] -->      \"@type\": \"Question\",<!-- [et_pb_line_break_holder] -->      \"name\": \"What Is Estate Tax reform advocacy for family-owned businesses?\",<!-- [et_pb_line_break_holder] -->      \"acceptedAnswer\": {<!-- [et_pb_line_break_holder] -->        \"@type\": \"Answer\",<!-- [et_pb_line_break_holder] -->        \"text\": \"Organized advocacy by family-owned business leaders can dramatically help educated lawmakers at the federal and state level understand the damage harmful Estate Taxes, or \u201cDeath Taxes,\u201d have on a business after a founder\u2019s death occurs. Strong advocacy can change the laws, and often do, saving family-owned business millions of dollars, and keeping families from selling their business to pay taxes.\"<!-- [et_pb_line_break_holder] -->      }<!-- [et_pb_line_break_holder] -->    }<!-- [et_pb_line_break_holder] -->  ]<!-- [et_pb_line_break_holder] -->}<!-- [et_pb_line_break_holder] --><\/script>[\/et_pb_code][et_pb_text admin_label=&#8221;Text&#8221; _builder_version=&#8221;4.27.6&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h1><strong>Frequently Asked Questions<\/strong><\/h1>\n<p>[\/et_pb_text][et_pb_accordion _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_accordion_item title=&#8221;What is an Estate Tax?&#8221; open=&#8221;on&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||||false|false&#8221; global_colors_info=&#8221;{}&#8221; toggle_level=&#8221;h2&#8243;]<\/p>\n<p>An Estate Tax, or \u201cDeath Tax,\u201d is a federal tax charged on the total net value of a person&#8217;s property and assets, including those in a family-owned business. It\u2019s paid directly out of the deceased person&#8217;s estate, with the first $15 million per individual ($30 million for married couples). \u00a0Assets above the exemption face federal rates up to 40%.<\/p>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;How do Estate Taxes hurt family-owned businesses?&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||||false|false&#8221; global_colors_info=&#8221;{}&#8221; open=&#8221;off&#8221;]<\/p>\n<p>Estate Taxes, or \u201cDeath Taxes,\u201d hurt family-owned businesses by forcing heirs to sell company assets, drain operational cash, or disrupt leadership continuity by having to pay large, sudden tax bills within 90 days of the deceased. While federal exemptions reach $15 million per individual ($30 million for married couples), estates above these exemptions could face a 40% tax.<\/p>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;Can Estate Tax policies be reformed?&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||||false|false&#8221; global_colors_info=&#8221;{}&#8221; open=&#8221;off&#8221;]<\/p>\n<p>Yes, Estate Tax policies can be changed through legislative actions. Changes can be made in baseline exemptions, altering taxable portions of an estate, changing gifting and trust rules, and repealing Estate Taxes, or \u201cDeath Taxes,\u201d altogether. Recent reforms include the permanent $15 million per-person exemption under 2025\u2019s H.R. 1, which demonstrates how lawmakers can reform tax rules with strong advocacy.<\/p>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;Did H.R. 1 lower Estate Taxes?&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||||false|false&#8221; global_colors_info=&#8221;{}&#8221; open=&#8221;off&#8221;]<\/p>\n<p>Yes, H.R. 1, the 2025 &#8220;One Big Beautiful Bill Act,\u201d lowered the Estate Tax by permanently increasing the lifetime federal estate and gift tax exemption. It raised the exemption to $15 million per person ($30 million for married couples) starting in 2026. It also stopped tax cuts from expiring, and set new, higher limits each year based on inflation.<\/p>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;What Is Estate Tax reform advocacy for family-owned businesses?&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||||false|false&#8221; global_colors_info=&#8221;{}&#8221; open=&#8221;off&#8221;]<\/p>\n<p>Organized advocacy by family-owned business leaders can dramatically help educated lawmakers at the federal and state level understand the damage harmful Estate Taxes, or \u201cDeath Taxes,\u201d have on a business after a founder\u2019s death occurs. Strong advocacy can change the laws, and often do, saving family-owned business millions of dollars, and keeping family\u2019s from selling their business to pay taxes.<\/p>\n<p>[\/et_pb_accordion_item][\/et_pb_accordion][\/et_pb_column][et_pb_column type=&#8221;1_2&#8243; _builder_version=&#8221;4.27.7&#8243; custom_padding=&#8221;20px||||false|false&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_accordion _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; min_height=&#8221;1140.6px&#8221; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;||||false|false&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_accordion_item title=&#8221;What is the death tax?&#8221; open=&#8221;on&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||5px||false|false&#8221; custom_padding=&#8221;0px||0px||false|false&#8221; global_colors_info=&#8221;{}&#8221; toggle_level=&#8221;h2&#8243;]<\/p>\n<p>The federal estate tax, often referred to as the \u201cdeath tax\u201d, applies to property transferred at death when the value of the property exceeds the estate tax exemption.<\/p>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;When is the tax due?&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||5px||false|false&#8221; global_colors_info=&#8221;{}&#8221; open=&#8221;off&#8221;]<\/p>\n<p>The tax is due 9 months after the date of death and is payable in cash.<\/p>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;What is the GST tax?&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||5px||false|false&#8221; global_colors_info=&#8221;{}&#8221; open=&#8221;off&#8221;]<\/p>\n<p>The generation-skipping transfer tax is a tax on assets that you pass on to your grandchildren (technically known as \u201cskip persons\u201d) at a 40% rate, once you have utilized your GST exemption. Note this is in addition to the 40% gift tax you also pay on the same assets.<\/p>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;What is the history of the estate tax?&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||5px||false|false&#8221; global_colors_info=&#8221;{}&#8221; open=&#8221;off&#8221;]<\/p>\n<p>The estate tax was initiated in 1916 to fund World War I. It was maintained in the tax code through the 20s and 30s to help prevent the concentration of wealth. Since that time, anti-trust laws have eliminated many of those concerns, but to date, the estate tax remains intact.<\/p>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;When was current estate tax law enacted?&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||5px||false|false&#8221; global_colors_info=&#8221;{}&#8221; open=&#8221;off&#8221;]<\/p>\n<p>Current estate tax law was established in 2025 with the OBBB HR1 included:A maximum estate tax rate of 40 percent, with an increase in the lifetime exemption to $15 million per person and $30 million per couple, that is also indexed to inflation.Unification: The estate, gift and generation skipping taxes continue to be permanently unified. This establishes a single graduated rate schedule for all three taxes.Spousal portability: Permanently allows couples to transfer any unused exemption to the surviving spouse under simplified rules.Preserved were widely-accepted accounting principles including valuation discounts, grantor-retained annuity trusts (GRATs) and state estate tax deductibility.<\/p>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;How much revenue is raised by the estate tax?&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||5px||false|false&#8221; global_colors_info=&#8221;{}&#8221; open=&#8221;off&#8221;]<\/p>\n<p>Generally less than 1% of tax revenues are from the estate tax; based on 2021 IRS Estate tax tables, estate tax revenue was $27 billion, which is .65% of total federal revenues.<\/p>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;What is the cost to collect the estate tax?&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||5px||false|false&#8221; global_colors_info=&#8221;{}&#8221; open=&#8221;off&#8221;]<\/p>\n<p>According to a December 1998 Joint Economic Committee report, the cost to comply and collect the tax is equal to the revenue raised.<\/p>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;How does the estate tax hurt family-owned businesses?&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||5px||false|false&#8221; global_colors_info=&#8221;{}&#8221; open=&#8221;off&#8221;]<\/p>\n<p>Much of the value of family-owned businesses, such as farms, manufacturers and construction firms is illiquid, as these businesses reinvest profits in assets such as land, buildings and equipment. When an owner passes away, these assets are often sold to pay the estate tax. In this way, the tax endangers a family business\u2019s ability to survive between generations.The cost of the estate tax comes not only from paying the tax itself, but also from paying for attorneys and accountants and large life insurance premiums as they engage in estate planning. For many family-owned businesses to keep operating after the death of the owner, they must plan for the estate tax. Planning costs associated with the estate tax are a drain on business resources, diverting precious resources away from expanding their businesses and creating jobs.<\/p>\n<p>&nbsp;<\/p>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;How many family businesses are there in America?&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||5px||false|false&#8221; global_colors_info=&#8221;{}&#8221; open=&#8221;off&#8221;]<\/p>\n<p>Based on research done by Joe Astrachan and Melissa Carey Shanker in 2003, entitled : \u201cFamily Businesses\u2019 Contribution to the US Economy; A Closer Look\u201d, there are 24.2 million family businesses in the US which generate 64% of GDP and employ 62% of the work force.<\/p>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;What is the economic effect of repealing the estate tax?&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||5px||false|false&#8221; global_colors_info=&#8221;{}&#8221; open=&#8221;off&#8221;]<\/p>\n<p>A study by Douglas Holtz-Eakin and Cameron T. Smith in 2009 found that if estate, gift and GST taxes were repealed it would raise the probability of hiring by 8.6 percent, increase payrolls by 2.6 percent, expand investment by 3 percent, create 1.5 million small business jobs, and cut the jobless rate by 0.9%.<\/p>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;How does the small business community view the estate tax?&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||5px||false|false&#8221; global_colors_info=&#8221;{}&#8221; open=&#8221;off&#8221;]<\/p>\n<p>Unfavorably. Ninety trade and industry organizations have formed the Family Business Estate Tax Coalition, whose sole purpose is to secure sustainable relief and ultimate repeal of the estate tax.<\/p>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;What is the general public\u2019s attitude towards repeal of the estate tax?&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||5px||false|false&#8221; global_colors_info=&#8221;{}&#8221; open=&#8221;off&#8221;]<\/p>\n<p>In national polls, focus groups and instant response sessions \u2013 the majority of respondents believe that the estate tax should be repealed.<\/p>\n<p>[\/et_pb_accordion_item][et_pb_accordion_item title=&#8221;What can Congress do to address the estate tax?&#8221; _builder_version=&#8221;4.27.7&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||5px||false|false&#8221; global_colors_info=&#8221;{}&#8221; open=&#8221;off&#8221;]<\/p>\n<p>Many lawmakers on the left and right understand the unfairness of the estate tax, but politics has gotten in the way of its elimination. The estate tax continues to impose a heavy burden on family businesses. Attorneys, accountants and life insurance companies benefit as hard-working entrepreneurs \u2013 the backbone of this country \u2013 carry the burden. Many Members of Congress recognize this burden and have gone on the record to indicate they support further relief and ultimate repeal of this onerous and confiscatory tax.<\/p>\n<p>[\/et_pb_accordion_item][\/et_pb_accordion][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Frequently Asked QuestionsAn Estate Tax, or \u201cDeath Tax,\u201d is a federal tax charged on the total net value of a person&#8217;s property and assets, including those in a family-owned business. It\u2019s paid directly out of the deceased person&#8217;s estate, with the first $15 million per individual ($30 million for married couples). \u00a0Assets above the exemption [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":1136,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"class_list":["post-18207","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/pages\/18207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18207"}],"version-history":[{"count":7,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/pages\/18207\/revisions"}],"predecessor-version":[{"id":18221,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/pages\/18207\/revisions\/18221"}],"up":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/pages\/1136"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}