<p>When you die you might have to pay death taxes. The proper name is  the Federal Estate Tax. Also most states have an inheritance tax which  also must be paid but it is relatively minor compared to the Federal  Estate Tax.</p>
<p>If you have assets over $3,500,000 (in 2009), you must  pay death taxes. The rates vary from about 37% to 55% on all amounts  over $3,500,000 (in 2009). For example if you had an estate of  $4,000,000, and you die in 2009, you would have to pay about $225,000 in  death taxes if you die.</p>
<p>The law requires that you file an Estate  Tax Return, Form 706, within 9 months of the date of death. The death  taxes must also be paid at that time. There are substantial penalties if  you fail to file the return without a valid excuse and also if you fail  to pay the death tax. Usually a lawyer or accountant prepares the  Estate Tax Return.</p>