What is the consequence of not paying federal estate taxes on property owned by a decedent?

When federal estate taxes are not paid on property owned by a decedent, all property in the estate becomes encumbered by a general lien. This lien arises as a result of the federal government asserting its right to tax the estate before any distribution of assets can occur. The federal estate tax is a liability that the estate must settle, and until the taxes are paid, the government has a claim against all of the estate's property.

This means that the estate cannot transfer or distribute the property to the heirs or beneficiaries until the tax obligations are satisfied. The general lien applies to the entire estate, including both real and personal property, ensuring that the government has recourse to collect the owed taxes before any assets are distributed. Thus, a lien serves as a powerful mechanism for the government to secure tax revenue from the estate.