Yes, inherited business shares are potentially subject to estate tax. For 2027 deaths, federal estate tax applies only if the whole estate, business shares included, tops the $15,480,000 basic exclusion ($15,000,000 for 2026 deaths), at a top rate of 40%.
State rules can bite much sooner. As of 2026, 12 states plus the District of Columbia have their own estate tax, and 5 states have an inheritance tax.
The real problem is cash. Any estate tax owed is due in cash within nine months of the owner's death. Yet the biggest asset in a business owner's estate is usually the business itself, which is illiquid. It can't be turned into cash quickly.
That clash can force a family to sell the very business they hoped to keep. Many family businesses do not survive the move to the next generation, and weak tax and succession planning is often the reason.
Three taxes matter here: the federal estate tax, state death taxes, and the capital gains tax your heirs may face when they sell. What your family pays depends on the value of the business, where you live, and the planning you do before you die.
Owners often start this work late, and then everyone scrambles. An estate planning attorney who handles taxable estates should lead, working with your accountant and financial advisor.
The Three Taxes Every Business Owner Must Conquer
When a business owner dies, the estate can face three different taxes. Worrying only about the "death tax" is a common and costly mistake.
A smart plan covers all three: the federal estate tax, state death taxes, and the capital gains tax your heirs may owe later.
Federal Estate Tax: The Giant Tax Most People Don't Pay
The federal estate tax is a tax on the transfer of your property at death. Your estate pays it to the Internal Revenue Service (IRS); the people who inherit from you do not.
How the IRS Calculates the Bill
The math starts with your gross estate. This is the fair market value of everything you own at death: cash, real estate, investments and your business shares.
Next come the allowable deductions. These include debts, funeral costs and legal fees. The two biggest are for assets left to a surviving spouse or a qualified charity.
What is left is your taxable estate. Adjusted taxable gifts you made during life are then added back before the tax is figured.
Why the Federal Exemption Is a Game-Changer
Most families never pay this tax because of the basic exclusion. Each person can pass $15,480,000 for 2027 deaths free of federal estate tax. The 2026 amount, shown at the top of this article, was slightly lower.
Only value above the exclusion is taxed, at the top rate named earlier.
Married couples get more through portability. A surviving spouse can use the unused exclusion of the spouse who died first. Together a couple can shelter $30,960,000 in 2027.
That only works if the executor files a timely Form 706 at the first death, even when no tax is due.
The Exemption No Longer Has an Expiration Date
Older articles warn of a "tax cliff" in 2026. That drop never happened.
Public Law 119-21, enacted July 4, 2025, made the higher basic exclusion permanent starting in 2026. The amount is indexed for inflation each year after that, so no drop is scheduled. Congress can still change the law.
A $10 million business alone sits under the 2027 exclusion. The picture changes when the business plus other assets push the estate past it, as the next example shows.
Example: When a Family Business Pushes an Estate Over the 2027 Exemption
Dana is unmarried and dies in 2027 with an $18,000,000 estate. Her business shares are worth $12,000,000, and other assets add $6,000,000. She made no taxable lifetime gifts.
Subtract the 2027 exclusion and $2,520,000 is taxable. At the top federal rate, the 2027 bill is about $1,008,000. This example applies that one rate to the whole excess to keep the math simple.
That money is due in cash nine months after her death, while most of her wealth is tied up in the company.
Now assume Dana is married and leaves everything to her spouse. The unlimited marital deduction brings the tax at the first death in 2027 to $0.
Her executor should still file Form 706 to elect portability. That saves Dana's unused exclusion for her spouse's later estate.
State Death Taxes: The Hidden Tax Trap in Your Backyard
Being under the federal exclusion does not put you in the clear. Many states have their own death taxes with far lower exemptions.
A state estate tax works like the federal one: the estate pays it on its total value. An inheritance tax is paid by the heirs, at rates that often depend on their relationship to the person who died.
In 2026, five states have an inheritance tax: Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania. Maryland has both taxes. Iowa's ended for deaths from January 1, 2025.
Business shares are generally taxed by the owner's home state. Real estate owned directly may be taxed where it sits.
Washington's row applies to deaths on or after July 1, 2026. Senate Bill 6347 restored the 20% top rate; the 35% rate applied to deaths from July 1, 2025 through June 30, 2026. Confirm your figure with your state revenue department.
An Oregon owner with a $3 million estate in 2026 owes no federal estate tax but can still owe Oregon estate tax.
| State | Type of tax | 2026 exemption | 2026 top rate |
|---|---|---|---|
| Connecticut | Estate and gift | Matches the 2026 federal exclusion | 12% |
| District of Columbia | Estate | $4,988,400 | 16% |
| Hawaii | Estate | $5,490,000 | 20% |
| Illinois | Estate | $4,000,000 | 16% |
| Kentucky | Inheritance | Up to $1,000, by heir class | 16% |
| Maine | Estate | $7,160,000 | 12% |
| Maryland | Estate and inheritance | Estate: $5,000,000; no inheritance tax on estates of $50,000 or less | Estate 16%; inheritance 10% |
| Massachusetts | Estate | $2,000,000 | 16% |
| Minnesota | Estate | $3,000,000 | 16% |
| Nebraska | Inheritance | Up to $100,000 for close relatives | 1% to 15% |
| New Jersey | Inheritance | $25,000 for Class C heirs; spouses and children exempt | Up to 16% |
| New York | Estate | $7,350,000; lost if the estate tops 105% of it | 16% |
| Oregon | Estate | $1,000,000 | 16% |
| Pennsylvania | Inheritance | None | 0% to 15% |
| Rhode Island | Estate | $1,838,056 | 16% |
| Vermont | Estate | $5,000,000 | 16% |
| Washington | Estate | $3,000,000 | 20% |
Capital Gains & The "Step-Up in Basis": Your Secret Tax Eraser
The third tax is not paid at death. It comes when your heir sells the inherited business. This is where the step-up in basis helps.
Your purchase price for an asset is its cost basis. Sell for more and the difference is a capital gain. When your heir inherits the asset, its basis resets to fair market value on your date of death.
How the Step-Up Wipes Out a Lifetime of Gains
Maria started her bakery with a $50,000 investment, her cost basis. When she dies in 2027, the business is worth $2 million. Her son Leo inherits it with a stepped-up basis of $2 million.
If Leo sells the bakery the next day for $2 million, his taxable gain is zero. Without the step-up, he would owe capital gains tax on $1,950,000.
Leo's basis can't be higher than the value finally set for estate tax. When Form 706 is required, the executor must give each heir a Form 8971 Schedule A showing that value.
Shares received as a lifetime gift are different. They keep the donor's original basis, with no step-up. That is the main trade-off of gifting, and some inherited assets get no step-up at all.
The Retirement Account Mistake
The step-up does not apply to retirement accounts such as 401(k)s and traditional individual retirement accounts (IRAs). They are "income in respect of a decedent." Every dollar an heir withdraws from an inherited traditional IRA is taxed as ordinary income.
Inherited LLC or Partnership Interests: Getting the Step-Up Inside the Business
An heir's basis in a limited liability company (LLC) or partnership interest steps up at death. Tax pros call this outside basis. The business's own assets do not step up unless the partnership has, or makes, a Section 754 election.
Without that election, the heir can still be taxed on built-in gains when the business sells its assets. Depreciation stays stuck at the old numbers too.
Here is an example. Sam inherits a 50% interest in an LLC that owns equipment in 2027. The equipment is fully depreciated but worth $800,000, so Sam's share is $400,000.
With a Section 754 election, Sam gets a basis adjustment for his full share that belongs to him alone. He can depreciate it again, which shelters his part of the income.
Without it, Sam gets no new depreciation. If the LLC sells the equipment, his share of the gain lands on his Schedule K-1 anyway.
Corporations work differently. S corporation shares get the outside step-up only, with no adjustment inside the company. C corporation shares step up the stock only.
Heirs who are bought out by a relative often learn this late. Ask the person who prepares the partnership return whether the election was made for the year of death. The answer changes how a later sale is reported, even when little tax is due.
The Art of Valuation: How to Legally Reduce Your Business's Taxable Value
The estate tax your family may owe comes down to one number: the value of your business. That number is not what you think it is worth. It is fair market value, set under IRS rules.
What the IRS Requires in a Business Appraisal
For estate tax, closely held shares are reported at fair market value under Treasury Regulation 20.2031-1(b). That is the price a willing buyer and a willing seller would agree on.
The IRS's long-standing factors come from Revenue Ruling 59-60. They include company history, economic outlook, book value, earning capacity, dividend capacity, goodwill, prior sales and comparable public companies.
The Form 706 instructions call for financial statements and valuation documents to back up the number.
Hire an independent appraiser with a recognized business valuation credential. The report should be detailed enough for another expert to repeat the work. Our guide on how shares are valued walks through the process.
Your executor may also pick the alternate valuation date, six months after death. It is allowed only if it lowers both the gross estate and the tax.
The Three Angles of Valuation
An appraiser looks at your business from three angles, then weighs them to reach one defensible value.
| Valuation approach | How it works | Best for |
|---|---|---|
| Market approach | Compares your business to similar companies that sold recently or trade publicly | Industries with plenty of comparable sales data |
| Income approach | Values the business on its future cash flow, discounted to today's dollars | Profitable, stable operating businesses |
| Asset-based approach | Subtracts liabilities from the fair market value of the assets | Holding companies and asset-heavy businesses |
Strategic Discounts: Your Most Powerful Tax-Reduction Tool
The IRS and courts accept that a slice of a private family business is worth less than its simple share of the whole. That allows legal discounts.
Why a Minority Share Is Worth Less
A discount for lack of control applies to a minority interest, meaning less than half. A minority owner can't force dividends or approve a sale.
A discount for lack of marketability applies because private shares have no public market. In cases through 2026, courts have accepted 15% to 45% for each. The right minority discount percentage depends on the facts, not a rule.
How Discounts Create Tax Savings
Take a 30% interest in a family business valued at $10 million in 2027. The appraiser applies a 20% discount for lack of control, then 25% for lack of marketability.
This $1.2 million reduction could mean nearly $480,000 in 2027 estate tax savings at the 40% rate.
That saving is real only for value above the 2027 exclusion, or above whatever exclusion remains after lifetime gifts. The same discounts stretch the gift exclusion when shares are gifted.
Under 2027 rules, understating value by 35% or more can trigger an accuracy-related penalty under Internal Revenue Code Section 6662. The penalty doubles for a gross understatement.
2027 illustration
| Action | Consequence |
|---|---|
| Start with pro-rata value | A 30% interest in a $10 million company is valued at $3,000,000 |
| Apply 20% discount for lack of control | Value drops by $600,000 to $2,400,000 |
| Apply 25% discount for lack of marketability | Value drops by another $600,000 to a taxable value of $1,800,000 |
Valuation Blunders That Trigger IRS Audits
The IRS looks hard at valuations with large discounts. A weak appraisal can bring an audit and penalties. Tax Court cases show what not to do:
- Using a conflicted appraiser. Your son or the company's accountant is a red flag. Independence is a must.
- Relying on generic rules. The appraiser must justify each discount with the facts of your business, not by citing other court cases.
- Failing to explain assumptions. The report must show how the appraiser chose discount rates, growth rates and comparable companies.
- Using the wrong standard of value. Estate tax uses fair market value. "Fair value" may not allow discounts.
Your Proactive Toolkit: Legal Structures to Protect Your Business
Knowing the taxes and the valuation rules is the first step. Acting on them is the next.
Sound legal documents, signed long before they are needed, separate a business that lasts for generations from one sold to pay taxes. These tools set a clear plan, cut the tax bill and create the cash to pay it.
The Buy-Sell Agreement: Your Business's Prenup
A buy-sell agreement is a binding contract among owners. It says what happens to an owner's shares after a triggering event such as death, disability or retirement.
It guarantees a buyer for your family, keeps unwanted owners out and sets a method for valuing the shares. The agreement also affects estate distribution, so your will and trust should match it.
How to Structure Your Agreement
There are two main types. In a cross-purchase agreement, the remaining owners must buy the deceased owner's shares. The buyers get a cost basis equal to what they pay, which cuts their future capital gains tax.
Cross-purchase plans with many owners need many insurance policies. A trusteed plan or an insurance LLC is a common fix.
In a redemption agreement, the business itself buys the shares. It is simpler to run, but the remaining owners get no basis increase. Company-owned insurance also creates the valuation problem described in the Connelly section below.
Can a Buy-Sell Agreement Lock in the Value for the IRS?
Yes, but only if it meets all three Section 2703 tests:
- It is a bona fide business arrangement.
- It is not a device to transfer the business to family for less than full value.
- Its terms are comparable to arm's-length deals.
A formula such as "book value" is a red flag for the IRS. The strongest agreements set the price by an independent appraisal of fair market value.
The Connelly Ruling: How Company-Owned Life Insurance Can Raise Your Estate Tax
In Connelly v. United States, decided June 6, 2024, the Supreme Court ruled on redemption agreements funded by company-owned life insurance.
The death benefit counts as a company asset when the deceased owner's shares are valued. The company's duty to buy back the shares does not offset it.
Here is a simple illustration. Two brothers each own 50% of a company. One dies in 2027.
2027 illustration
| Item (illustration) | Value |
|---|---|
| Company before insurance | $3,000,000 |
| Company-owned policy payout | $3,000,000 |
| Company value for estate tax | $6,000,000 |
| Deceased brother's shares | $3,000,000 |
Without the policy, his shares would be valued at $1,500,000 in 2027. The insurance doubles the value taxed in his estate.
Owners have three fixes:
- Switch to a cross-purchase structure, where owners hold the policies.
- Use an insurance LLC or a trusteed cross-purchase.
- Have existing redemption agreements and their formula price reviewed.
Irrevocable Trusts: Your Tax-Shielding Fortress
A trust is a legal entity that owns assets for beneficiaries. For estate tax, the key is the irrevocable trust. Once you move assets into one, you no longer own them, and they leave your taxable estate.
Three kinds do most of the work for business owners.
An irrevocable life insurance trust owns a policy on your life, so the death benefit stays out of your estate. The trustee can use that cash to buy shares from your estate, which gives the estate money for taxes.
If you move an existing policy into the trust and die within three years, the proceeds are pulled back into your estate. Having the trust buy a new policy avoids this.
With a grantor retained annuity trust, you transfer shares and receive a fixed annuity for a set term. Growth above the IRS Section 7520 rate, published monthly, passes to your children free of gift and estate tax. If you die during the term, the assets return to your estate.
With an intentionally defective grantor trust, you sell shares to the trust for a promissory note. That freezes the value in your estate at the note amount, and future growth happens inside the trust.
You keep paying the trust's income tax, which shrinks your estate further. Shares sold to this trust get no step-up at death.
Life Insurance: The Ultimate Cash Solution
A business owner's estate is usually short on cash. Life insurance is the most direct fix. Whether life insurance is taxed at death depends on who owns the policy.
| Do | Don't |
|---|---|
| Have an irrevocable life insurance trust own the policy, keeping the death benefit out of your estate | Own the policy yourself or keep any incident of ownership, such as the right to change beneficiaries |
| Use it to fund your buy-sell agreement so buyers have cash at once | Assume your family will figure it out without a funded plan |
| Use it to equalize: business to the active child, insurance to the others | Leave the business to one child and nothing comparable to the rest |
| Review coverage as the business grows | Set it and forget it; an old policy may fall short |
| Work with a qualified insurance advisor on type and amount | Buy the cheapest policy; it may expire before you need it |
IRC Section 6166: The Tax Deferral Safety Net
If planning falls short and cash is tight, Internal Revenue Code (IRC) Section 6166 can help.
If your interest in a closely held business is more than thirty-five percent of your adjusted gross estate, your executor can elect to defer the estate tax tied to the business. The election goes on a timely filed Form 706.
The estate pays interest only for up to five years, then the tax in up to ten annual installments. The last payment falls about 14 years after the original due date.
Interest is 2% on the tax tied to the first $2,010,000 of business value for 2027 deaths, an amount set in Revenue Procedure 2026-35. In 2027 the rest bears interest at 45% of the IRS underpayment rate. None of this interest is deductible.
Selling or withdrawing half or more of the business interest makes the unpaid tax due at once. The IRS can also require a bond or a special lien.
Separately, Section 6161 lets the IRS extend the time to pay for reasonable cause.
Section 2032A Special-Use Valuation for Family Farms and Business Real Estate
Land used in a family farm or closely held business can be valued at its current use instead of its highest and best use. A cornfield is valued as a farm, not as a future subdivision.
For a 2027 death, the estate must meet these tests:
- The farm or business property, real and personal, makes up at least half of the adjusted gross estate.
- The real property alone is at least 25% of it.
- The owner or family materially participated in the operation before death.
- The property passes to qualified family heirs.
For 2027 deaths, the election can cut the value by up to $1,500,000 under Revenue Procedure 2026-35, section 3.45.
The executor elects it on Form 706, Schedule A-1. Heirs must keep the qualified use for 10 years, or a recapture tax applies.
How Your Choice of Business Structure Dictates Your Future
The structure you pick at the start has lasting effects on your estate plan. What works best for yearly income taxes is often not best for passing the business at death.
LLC vs. S-Corp: A Head-to-Head Comparison for Estate Planning
2026 rules
| Feature | LLC | S-Corporation |
|---|---|---|
| Ownership flexibility | Unlimited owners, including companies and any type of trust | Up to 100 shareholders (family can count as one), U.S. citizens or residents; only certain trusts |
| Transfer of shares | Usually needs other members' consent, which supports valuation discounts | A transfer to an ineligible owner can end S status |
| Profit and loss allocation | Flexible under the operating agreement | Strictly by ownership; one class of stock |
A revocable living trust can hold S corporation stock during the owner's life and for two years after death. After that, a trust must qualify as a qualified subchapter S trust or an electing small business trust, with an election filed on time.
An LLC taxed as an S corporation inherits the S corporation rules.
An LLC is generally the more flexible and forgiving choice for estate planning. It fits transfers to grantor trusts, and its built-in transfer limits help support valuation discounts.
The S-Corp Trap: An Accidental Tax Disaster
David's story shows how a missed deadline can undo an S election.
| Action | Consequence |
|---|---|
| David puts his S corporation shares in a revocable living trust | No problem; this trust is a permitted shareholder during his life |
| David dies; his trust holds the shares in a continuing trust for his kids, with discretionary payouts | The trust stays eligible for only two years after death |
| The trustee misses the window; no qualified subchapter S trust or electing small business trust election is filed | The S election ends; the company becomes a C corporation with double taxation |
| The fix: draft the continuing trust to qualify, and calendar the deadlines | Each beneficiary files the qualified subchapter S trust election within 2 months and 16 days; late relief exists under Revenue Procedure 2013-30 |
The Human Factor: Why Most Succession Plans Really Fail
A technically perfect plan can still fail if it ignores the people involved. Many transitions fail because of unresolved family conflict, emotional attachment and poor communication, not taxes.
Working Through the Emotional Minefield
Succession planning forces hard talks. Founder's syndrome describes a founder whose identity is so tied to the business that letting go feels impossible. The founder often undermines the successor.
Old sibling rivalries can flare up too.
The most common fight is fair versus equal. Giving every child the same number of shares is equal. It is often not fair when one child has given a career to the business and the others have not.
One practical step is to split voting power from value. Give voting shares to the active child and non-voting shares to the others. An LLC can do this, and so can an S corporation, because voting differences are allowed within one class of stock.
The Perils of an "Equal" but Unfair Plan
Picture a founder with three children. One has worked in the business for 20 years, and two have other careers.
| The plan | The aftermath |
|---|---|
| Mark leaves one-third of his company stock to each child to be "equal" | The active son runs the company but is a minority owner; his sisters demand large dividends |
| The son wants new equipment; his sisters vote for a payout | The business stalls, relationships break, and the company borrows to buy out the sisters |
A better plan leaves the business to the active son and uses life insurance to give the other two an inheritance of equal value.
The Corporate Trustee: A Neutral Referee for Your Family
Naming one child as trustee for the others can be a disaster. A corporate trustee, meaning a bank or trust company, is a neutral professional bound by law to follow the trust's terms.
Pros and Cons of a Corporate Trustee
| Pros | Cons |
|---|---|
| Objective: follows the trust document, not family politics | Can seem rigid next to a family member |
| Expert in trust administration, tax law and investments | Charges fees, often a percentage of assets |
| Continuous: never gets sick, dies or moves away | Can feel impersonal |
| Absorbs conflict, so siblings can stay siblings | May require a high minimum trust size |
| Regulated and audited as a fiduciary | The trust officer assigned to your family may change |
A family member and a corporate trustee can also serve together as co-trustees.
The Process: Filing the Estate Tax Return (Form 706)
The executor must file Form 706, the United States Estate (and Generation-Skipping Transfer) Tax Return, when the gross estate plus adjusted taxable gifts tops the basic exclusion. That is $15,000,000 for 2026 deaths and the higher indexed amount for 2027 deaths.
The return is due nine months after death. Form 4768 gives an automatic six-month extension to file, but not to pay.
Form 706 runs from Schedule A through Schedule U. Closely held corporate stock goes on Schedule B. Partnership, LLC and sole proprietorship interests go on Schedule F. Attach financial statements and the appraisal.
An estate that files only to elect portability can make a late election within five years of death under Revenue Procedure 2022-32.
Within 30 days of filing, the executor sends Form 8971 and its Schedule A to the IRS and the heirs.
What to Do Next
- List every asset at today's value, business shares included, and compare the total with the federal exclusion and your state's exemption.
- Order an independent appraisal of the business.
- Read your buy-sell agreement and check who owns the life insurance that funds it.
- If you own S corporation stock, confirm any continuing trust is drafted as a qualified subchapter S trust or an electing small business trust.
- Ask your executor to calendar the Form 706 due date and the Form 4768 extension.
Frequently Asked Questions (FAQs)
Quick answers for owners and heirs.
Is there a federal inheritance tax?
No. The federal government taxes the estate, not the heirs. Only five states tax heirs through an inheritance tax: Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania.
Can I avoid estate taxes with a simple will or a revocable living trust?
No. Assets passing under a will or a revocable living trust still count in your taxable estate, because you kept control of them during your life.
If I inherit business stock and sell it immediately, do I pay tax?
No, probably not. The step-up makes your basis the stock's value on the date of death, so selling at that price leaves no gain. Selling costs can even create a small loss. Any gain from a later rise is long-term, however briefly you held the shares. Your basis must match Form 8971 Schedule A when one is issued.
How long does the estate have to pay the estate tax?
Nine months after death, in cash. Form 4768 extends the time to file by six months, not the time to pay. Section 6161 allows more time to pay for reasonable cause. Section 6166 installments can apply when the business is a large enough share of the estate.
What is the most common reason a family business fails after being inherited?
Lack of a succession plan. Families that never plan for the handoff of leadership, ownership and taxes often end up in conflict and a forced sale.
Can the IRS challenge the value my appraiser determines?
Yes. The IRS often challenges valuations, especially those with large discounts, and a big understatement can bring an accuracy-related penalty. A well-documented, independent appraisal is your best defense.
Is it better to gift parts of my business during my lifetime?
Yes, it can be. In 2027 you can give $20,000 per recipient tax-free ($19,000 in 2026). Larger gifts use your lifetime exclusion, the same amount as the 2027 estate tax exclusion, and go on Form 709. Future growth leaves your estate, but gifted shares keep your basis, so heirs lose the step-up.
My business is an S-Corp. Are there special estate planning rules I need to know?
Yes. A revocable living trust can hold S corporation stock during your life and for two years after death. A trust that keeps the shares longer must qualify as a qualified subchapter S trust or an electing small business trust, with a timely election, or the S election ends. Use an attorney who knows these rules.
Is the estate tax exemption going to drop?
No drop is scheduled. The exemption rose for 2026 deaths, is permanent and indexed for inflation, and rose again for 2027 deaths, when a married couple with portability can shelter $30,960,000. Only a new act of Congress could lower it. The IRS will announce the 2028 figure in late 2027.
Does the Connelly Supreme Court case affect my buy-sell agreement?
Yes, if your company owns life insurance to buy back a deceased owner's shares. Under Connelly (2024), the proceeds raise the company's value for estate tax, and the buyback duty does not reduce it. Have your agreement and its funding reviewed. A cross-purchase or insurance LLC may avoid the problem, as the Connelly section above explains.
Related reading
- What Are the Differences Between Estate Tax and Inheritance Tax? (w/Examples) + FAQs
- Can Estate-Owned Business Shares Trigger Minority Discounts? (w/Examples) + FAQs
- How Are Business Shares Valued for Estate Tax? (w/Examples) + FAQs
- Do You Pay Tax on Inheriting a Business? (w/Examples) + FAQs
- What Happens When You Inherit a Business? (w/Examples) + FAQs
- Is It Better to Inherit Money or Property? (w/Examples) + FAQs