Life insurance can be used as a way of helping pay estate taxes. Giving gifts to charity either before or after death also reduces estate taxes by reducing the taxable estate value. Property transferred before death with retained life estate, or taking effect at death is helpful in making sure that the person you want to receive your assets does so. It may not reduce the estate tax bill due. The information contained in this NebFact is for educational purposes only.
Tax is complicated and the information presented here has necessarily been simplified.
See a tax consultant for specific questions. An idea of the amount of federal estate tax that would be due can be obtained by filling out the table below. Kenneth R. Bolen, Director of Cooperative Extension, University of Nebraska, Institute of Agriculture and Natural Resources.