inheritance tax

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Inheritance tax superseded earlier UK arrangements for taxing wealth, including estate duty or death duty and capital transfer tax.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

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 ?
How strongly do estates respond to estate taxation? By exploiting more than 80 years of IRS data covering multiple tax regimes, and age variation of estate tax decedents, Joel Slemrod and I estimate an elasticity of reported estates with respect to the net-of-tax rate of about -0.16, suggesting that the estate tax does in fact reduce reported estates, either because it curtails wealth accumulation or induces tax avoidance, or both.
In essence, they allow clients to hold the benefits of absolute ownership of assets without the negative ramifications of estate taxation and access by creditors.
"A secondary rationale" for estate taxation, Bartlett asserts, "is that inherited wealth is undeserved and perhaps even harmful for the recipient." But study after study, he says, shows that most great wealth in America does not come chiefly from inheritances.
From 1987 to 1997, a greater percentage of the population faced estate taxation as inflation eroded the value of the $600,000 exemption.
Republican proposals to reduce capital gains and estate taxation would especially benefit the very rich and add more momentum to these trends.
Little change took place in the basic structure of estate taxation during this period.
Keep in mind that when using this distribution technique an alternative source of payment for estate taxation should be provided other than the IRA.
In the future, the policies can be transferred to a life insurance trust to remove the policy proceeds from estate taxation. By making such a transfer, the liquidity is available for taxes.
The nature of your assets and where they are located also affects estate taxation and planning.
The proceeds can be structured to avoid estate taxation but still be available to pay estate taxes that would otherwise be incurred based on the value of qualified plan benefits, other non-qualified benefits, and the value of stock options and restricted shares.
Moeit said that citizens who qualify for the real estate tax since the application of the law in 2013 until 2018, can apply for the tax instalments for these years through the Egyptian Real Estate Taxation Authority.
The Center for Global Best Practices invites landowners and administrators, businesses, accountants, lawyers and even LGU officials to attend a one-day pioneering program titled, 'Local Government and Real Estate Taxation,' on Friday, Aug.