Everyone talks about the Estate Tax and how evil it is, even causing financial disasters within very wealthy circles, but few know how it is actually calculated. So today, I am going to show you you how to easily calculate the Federal Estate Tax. I say Federal because there are certain states with estate taxes, but the amounted collected on the State level is dwarfed by the revenue collected by the Federal Government.
Is the math going to be perfect? Nope. Rather, I am going to be using what is commonly referred to as “napkin math” round numbers to make it easier for all of us (hey, its not like we are going to be filling out a 706 Form after this post…hopefully).