THE "DEATH TAX". The federal estate tax is a tax on the transfer of wealth from a deceased person to others, usually his family. At its simplest, you add up the estate, subtract the deductions, subtract the exemption amount, and tax the rest. WHAT'S IN THE ESTATE? The first step is to determine what assets are taxable as part of the "estate". In a nutshell, it's everything you own. It includes everything from the obvious, like stocks, bonds, cash, to the not so obvious, like tax-free municipal bonds, annuities and life insurance proceeds, assets in a revocable grantor trust, and sometimes even property that you gave away decades earlier. It includes the full value of IRA and 401(k) accounts, deferred compensation, loans receivable, your home, furnishings, jewelry, everything that has value. It does not matter that life insurance or bank accounts might pass