Under 26 USC 2010(c)(3), the threshold for imposition of federal estate taxes is determined by the "basic exclusion amount," also known as the "estate tax exemption" or "unified credit exclusion amount. " The basic exclusion amount is how much a decedent's estate plus lifetime gifts can pass free of federal estate and gift taxes. For 2026, this amount is $15,000,000.00 per person or $30,000,000.00.  Any value above these amounts may be taxed at the federal estate tax rate of up to 40%.

The "basic exclusion amount" is the value of the gross estate that is exempt from estate tax. The "gross estate" includes the value of all property owned by the decedent at the time of death, as well as certain prior taxable gifts before any deductions or credits are applied. 26 USC 2001. If the gross estate exceeds the basic exclusion amount applicable for the year of the decedent's death, an estate tax return must be filed and estate taxes may apply.