An "estate" consists of all the property a person owns or controls, regardless of if it is in his or her sole name, held through a partnership, in a joint ownership arrangement, or through a trust, as well as all other monies, which would be generated on the person's death, such as through life insurance.
The laws governing estate planning pertain to the following:
Federal gift and estate tax law allows each taxpayer to transfer a certain amount of assets, free from tax, during his or her lifetime or at death. Certain gifts, valued at $10,000 or less, can be made and are not counted against this amount. The specific amount of money that can be shielded from federal estate or gift taxes is determined by the federal unified tax credit. The credit is used during your lifetime when you make certain taxable gifts, and the balance, if any, can be used by your estate after your death.
A skilled estate planning lawyer can guide you through the nuances of the law and the various taxes that can be leveled against you upon death, including federal estate taxes, state estate taxes, inheritance taxes, etc.