re: I don't understand inheritance tax

Many successful private farms and businesses have to be sold just to pay the inheritance taxes. I believe the amount that can be passed on without tax is $5 million. Most larger farms and many small businesses exceed this amount and the children have to divest part of the business or sell farmland to come up with the 51% tax. As I understand, even a trust has the same limits, butthe husband and wife can both pass on $5 million each with most of the wife's portion being taxed at the 51% rate.