Estate tax (also called inheritance tax or death tax in some jurisdictions) is a government levy on the total value of a deceased person's estate before it is distributed to heirs. In the United States, the federal estate tax applies to estates above a threshold (approximately $13 million as of 2026 for individuals) at rates up to 40%.
For billionaires, estate taxes represent a potential multi-billion-dollar liability. This has driven the development of complex tax planning strategies: irrevocable trusts, Grantor Retained Annuity Trusts (GRATs), charitable remainder trusts, and other vehicles that allow wealth to transfer to heirs or charitable organizations at reduced tax rates.
The debate over estate taxes is central to broader discussions about intergenerational wealth inequality and whether billionaire dynasties represent a structural economic problem.