Depending on how much you own when you die, your Estate may have to pay Estate taxes before your assets can be distributed to your heirs. Estate taxes are different from and in addition to probate expenses and final income taxes. Although some states have their own inheritance/death taxes, Colorado currently does not. Federal estate taxes are expensive and must be paid in cash within nine months after you die. Since few estates have this much cash, assets often have to be liquidated. Forced liquidation may not allow the maximum value of your assets to be realized.
1.If you are married, use both Estate tax exemptions.
2.Remove assets from your Estate before you die.
3.Buy life insurance to replace assets given to charity
and/or to pay any remaining Estate taxes.