The estate tax is typically applied to your assets once you've passed away. The federal estate tax will be assessed on the current fair market value of your assets at the time of your death. However, assets inherited by your spouse or heirs (limited to just over $12M in 2022 for non-spouses) are generally not subject to the federal estate tax. At the state level, estate or inheritance laws and tax rates vary by state. You can find out which states apply a tax, and how much, here.