inheritance tax


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Related to inheritance tax: capital gains tax, gift tax, estate 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Inheritance tax superseded earlier UK arrangements for taxing wealth, including estate duty or death duty and capital transfer tax.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 ?
If you die within seven years of making a gift, a proportion of the Inheritance Tax, on a tapering scale, would be payable as though the gift had been included in your estate.
If you are wealthy the Government might inherit your assets through a massive Inheritance Tax bill.
This, in addition to the PS325,000 already in operation, will amount to a PS500,000 inheritance tax threshold per person.
Inheritance tax is charged at 40% on gifts given in the three years before death, with gifts made three to seven years before death charged on a sliding scale of smaller percentages, known as "taper relief".
Certainly, realty companies selling UK property do not highlight this point to prospective buyers that they are exposing themselves to a 40 per cent inheritance tax for fear of losing the sale.'
Inheritance tax can be a highly complicated area of personal finance that is affecting more and more people every year.
At Hay & Kilner, our specialist advisers in our Rural Team have extensive experience in advising land and farm business owners about the complexities of Inheritance Tax, APR and BPR to ensure all reliefs and exemptions available on death are captured as much as possible.
Inheritance taxes have been slashed from a maximum rate of 56 percent to a maximum of just 7 percent.
Figures from HMRC show around 300 estates, including 130 in Birmingham, 100 in Solihull, 40 in Dudley and 30 in Wolverhampton, along with less than 10 in each of the other parts of the Birmingham area, paid inheritance tax in 2012/13.
Due to the complexity involved in making such a claim and owing to the complex nature of Spanish inheritance tax legislation, wide knowledge and expertise of local, domestic and EU laws and regulations are required.
In addition to an estate tax, New Jersey also has an inheritance tax (see New Jersey Statutes Annotated [NJSA] section 54:5-1).