inheritance tax

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Related to Death duties: inheritance tax

Inheritance Tax

A tax on the money or assets that one inherits from an estate, as opposed to a tax on the estate itself. In the United States, inheritance taxes are levied at the state level and apply to the inheritors rather than the estate of the deceased. Generally speaking, inheritance taxes vary according to the inheritor's relationship with the deceased. For example, a spouse rarely, if ever, is responsible for an inheritance tax. It should not be confused with an estate tax, which is a tax on the estate before it is distributed.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

inheritance tax

A state tax levied on the recipient of an estate rather than on the estate itself. The tax varies by state and its severity in a given state usually depends on the kinship between the deceased and the heir. Some states levy a tax on the estate instead of a tax on the amount inherited. Also called death tax. Compare estate tax.
How can I minimize inheritance tax?

Estate and gift tax law is in a state of flux. An estate planning attorney will have the most up-to-date information available to assist you in minimizing your tax liability. Avoiding probate should also be a goal. Joint ownership, revocable living trust, irrevocable trusts, and life insurance may be useful tools to avoid or eliminate the estate tax and costs of probate, but only an experienced estate planning attorney can help you decide which of these tools will suit your needs best.

Gloria Cole, Attorney, private practice, Weston, MA
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

inheritance tax

a form of WEALTH TAX imposed by the UK government on a proportion of a person's private assets when these assets are transferred to the person's beneficiaries. Currently (as at 2005/06) ‘chargeable assets’ such as houses, stocks and shares, etc. up to a maximum of £275,000 are tax-exempt. Above £275,000 inheritance tax is levied at a flat rate of 40%. Assets transferred more than seven years before the donor's death are exempt from inheritance tax, while assets transferred between three and seven years before death are taxed at lower rates.

Inheritance tax superseded earlier UK arrangements for taxing wealth, including estate duty or death duty and capital transfer tax.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

inheritance tax

see WEALTH TAX.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

inheritance tax

See estate tax.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Second, wealth statistics obtained from the death duties omit certain assets for which it is unnecessary for a report to be made to the Inland Revenue on the death of the owner.
Rocketing property prices mean ordinary families routinely hit the pounds 263,000 threshold and are forced to pay death duties on their estates.
Yet death duties or 'inheritance tax' mitigate against this natural wish.
He should increase the payment threshold to pounds 500,000 and all death duties paid should go into the local authority pot - the vast majority of most people's estates come from houses anyway.
The present Duke of Gloucester was hoping to raise pounds 1m from the auction to pay deferred death duties. But the sale has already exceeded pounds 1.3m despite being less than a third of the way through the 700 lots.
TONY BLAIR is being urged to "soak the super-rich" with higher death duties to help poor children.
The French weekly L'Express has reported that the operation is shortly to be liquidated to pay death duties following the death of its founder Jean-Luc Lagardere in March last year.
We should abolish the vast exemptions on death duties and tax at a more modest universal rate which rises progressively - and at the same time we should raise income tax thresholds so those earning pounds 12,000 per year should pay no income tax.
"He was determined it wouldn't go in death duties and said he felt it was better to give with a warm heart than a cold hand.
The Tories' policy on this could see to it that almost all families in this country would be able to pass on their assets to their children without fear of death duties.
I AM compelled to comment on yesterday's Record View "Same Old Tory" about the Conservatives' conference/election pledges, especially the one to axe Death Duties on inheritances up to pounds 1million.
The Shrubland estate in Suffolk, which is on the market separately for pounds 23 million, is being sold by owner Lord de Saumarez to pay off death duties. Lord de Saumarez is a descendent of James de Sau-marez, Nelson's second-in-command at the Battle of the Nile in 1798.