The amount of your estate that can pass to your heirs (not including your spouse) without having to pay any estate tax will increase over the next nine years:

Year 2001 = $675,000

Year 2002 = $1,000,000

Year 2004 = $1,500,000

Year 2006 = $2,000,000

Year 2009 = $3,500,000

Year 2010 = Estate Tax Repealed

When the total value of the estate exceeds the amount of the deduction listed above, estate taxes will become due. The exemption amount describe above is then applied as a tax credit. If your estate is above the exemption amounts, then your needs are beyond the scope of the wills produced at this site and you should seek an estate planning professional to pursue strategies to avoid this tax burden.