Estate tax may apply when property passes from someone who has died to the people or organizations receiving it. For many families, this tax never becomes an issue because federal law allows a large amount of wealth to transfer before the estate tax applies.
However, your property may be more exposed than you think if you own real estate, business interests or valuable items. In 2026, the federal filing threshold is $15 million, but state rules can be lower. Virginia has not had a state estate tax, an inheritance tax or a gift tax since 2007.
The value is bigger than one house
When you ask whether your property is subject to estate tax, do not look only at your home. The government may consider the full taxable estate, which includes bank accounts, stocks, life insurance proceeds, land, rental property, business shares and other assets. This matters because separate assets can add up quickly. A home that gained value or investment accounts built over many years may push an estate closer to a taxable range.
Debts, expenses and certain transfers may reduce the taxable amount, but they must be handled correctly. A clear inventory of what you own is an important first step.
Planning can lower the risk
Tax exposure is not only about how much you own today. It is also about how your assets are titled, who your beneficiaries are and whether your plan reflects current tax rules.
Some people use trusts, lifetime gifts, charitable planning or business succession tools to reduce future tax pressure. These steps should fit your goals, not just chase tax savings.
Remember, the federal estate tax applies to residents of every U.S. state, including Virginia, so if you are unsure whether your property could be affected, a comprehensive legal review can bring clarity.
