inheritance tax

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Related to death duty: 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.

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

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Inheritance tax superseded earlier UK arrangements for taxing wealth, including estate duty or death duty and capital transfer tax.

inheritance tax

see WEALTH TAX.

inheritance tax

See estate tax.

References in periodicals archive ?
This fourth refinement of the data is of special importance because it provides a broadly reliable means of correcting for the three main omissions from the estimates derived from death duty returns.
Footpad is favourite for the Racing Post Arkle at Cheltenham in March, while Death Duty, who will be dropping in trip for Tuesday's contest over two miles and a furlong, is joint-favourite for the JLT Novices' Chase at the festival.
HAT-TRICK Gordon Elliott with Death Duty, Bar One Racing Drinmore Novice Chase winner, in Fairyhouse yesterday
Death Duty is now set to tackle the JLT Novices' Chase, for which he is a best-priced 8-1.
Jessies Dream (2010), Don Cossack (2013) and the ill-fated No More Heroes (2015) all landed the event for Elliott, who reports Death Duty, an 11-length winner of the Grade 3 Buck House Chase at Punchestown in October, in top form for today's race.
Death Duty is undoubtedly the better horse but this will be Dinaria Des Obeaux's best chance to win a Grade 1 and the conditions are ideal.
Let's Dance was beaten, at long odds-on, by stable companion Augusta Kate in the Grade 1 mares event at Fairyhouse over Easter and produced a rock-solid performance to end her season, finishing fourth in a hot Grade1 at the Punchestown Festival, behind Bacardys, Finian's Oscar and Death Duty.
The highlight of the six wins, at a combined 112-1 at SP, came when Death Duty extended his unbeaten record over fences to two with a commanding win in ?
Winner of a competitive novice handicap at the Punchestown Festival, this fellow appeared to blow-up when third to Death Duty on his seasonal bow at Punchestown last month and, fitter today, might prove too strong for the exciting Jury Duty and Bamako Moriviere.
STARS COME OUT AT PUNCHESTOWN lights the touchpaper on what should be another thrilling jumps season with a star-studded card featuring the likes of Death Duty, Minella Rocco, Outlander, Road To Respect and Samcro.
Elliott struck with Death Duty, which produced an excellent display of jumping to win the Grade 3 Buck House Novice Chase at the expense of Tous Est Permis and Woodland Opera.
On a good afternoon for Gordon Elliott, Davy Russell and Gigginstown at Tipperary, Death Duty makes a winning start over fences; 4.