What assets are subject to inheritance tax?

Nearly every asset the deceased owned at death is potentially subject to inheritance or estate tax, including real estate, cash, investments, business interests, retirement accounts, life insurance proceeds payable to the estate, vehicles, and personal property such as jewelry, art, furniture, and collectibles.

Tax authorities value these assets based on their fair market value at the date of death, not what was originally paid for them or what they're insured for. This matters because household contents and personal property are often overlooked during estate settlement, yet they still count toward the taxable estate and need documentation that will hold up if the filing is reviewed.

What Typically Counts Toward the Taxable Estate

• Real property: the primary residence, land, rental property, and other real estate interests
• Financial accounts: cash, checking and savings balances, CDs, stocks, bonds, and mutual funds
• Business interests: sole proprietorships, partnership shares, and closely held company stock
• Life insurance and retirement assets: policies payable to the estate and certain annuity or retirement interests
• Personal property: jewelry, furniture, vehicles, clothing, and general household goods
• Collectibles and fine art: antiques, coins, paintings, and other items that typically require a professional appraisal to establish value

Some assets pass outside probate through joint ownership or beneficiary designations, but many tax systems still count them toward the taxable estate, so it's worth confirming with your attorney which items apply in your case.

A probate appraisal establishes the date-of-death fair market value for personal property and estate contents, prepared to standards that hold up with tax authorities and the court. If you're unsure whether a specific item belongs on the estate inventory, our FAQ on what assets are not considered part of an estate covers common exclusions in more detail.