Understanding Estate Taxes
4. Determining your taxable estate
Now, remember that estate taxes are on the net value of your estate when you die. To determine the current net value of your estate, add your assets then subtract your debts.
Include your home, business interests, bank accounts, investments, personal property, IRAs, retirement plans-and death benefits from your life insurance policies.
If the net value of your estate is less than $2 million and you die in 2008, you'll pay no estate taxes. But if it's more, every dollar over $2 million will be taxed at 45%!