Who is subject to the estate tax?

The estate tax is a tax on the transfer of the estate of a deceased person, and whether or not a deceased individual is subject to this tax depends on the total value of their assets at the time of death. Specifically, individuals with assets exceeding a certain exemption threshold established by federal law are subject to the estate tax. This exemption amount can vary based on legislation and inflation, but it generally protects a significant portion of an estate's value, meaning only those estates that exceed this threshold will incur tax liabilities.

Individuals with low annual incomes are not necessarily tied to the estate tax because the tax is based on the value of the estate, not the income of the individuals. Similarly, corporations and partnerships do not fall under the same estate tax considerations, as the tax is levied on individuals. Lastly, not all deceased individuals are subject to the estate tax, as those with estates valued below the exemption threshold will not incur any estate tax, making it relevant only for certain estates based on their total value. Therefore, the correct answer highlights that the estate tax applies primarily to property owners whose assets exceed the exemption limit.