An inheritance or estate tax is a tax paid by a person who inherits money or property or a levy on the estate (money and property) of a person who has died.
International tax law distinguishes between an estate tax and an inheritance tax—an estate tax is assessed on the assets of the deceased, while an inheritance tax is assessed on the legacies received by the estate's beneficiaries. However, this distinction is not always observed; for example, the UK's "inheritance tax" is a tax on the assets of the deceased, and strictly speaking is therefore an estate tax. For historical reasons, the term death duty is still used colloquially (though not legally) in the UK and some Commonwealth countries.
Varieties of inheritance and estate taxes
Belgium, droits de succession or successierechten (Inheritance tax). Collected at the federal level but distributed to the regional level.
Brazil: Imposto sobre Transmissão "Causa Mortis" e Doação de Quaisquer Bens ou Direitos (Tax on Causa Mortis Transmission and as Donation of any Property and Rights). Collected at the state level. The Brazilian Senate limited the maximum rate to 8%, but the average rate imposed by states is 4%.
The estate tax in the United States is a tax on the transfer of the estate of a deceased person. The tax applies to property that is transferred via a will or according to state laws of intestacy. Other transfers that are subject to the tax can include those made through an intestate estate or trust, or the payment of certain life insurance benefits or financial account sums to beneficiaries. The estate tax is one part of the Unified Gift and Estate Tax system in the United States. The other part of the system, the gift tax, applies to transfers of property during a person's life.
In addition to the federal estate tax, many states have enacted similar taxes. These taxes may be termed an "inheritance tax." The tax is often the subject of political debate, and opponents of the estate tax call it the "death tax".
If an asset is left to a spouse or a federally recognized charity, the tax usually does not apply. In addition, up to a certain amount varying year by year can be given by an individual, before and/or upon their death, without incurring federal gift or estate taxes: $5,340,000 for estates of persons dying in 2014, $5,430,000 for estates of persons dying in 2015, and $5,450,000 for estates of persons dying in 2016. Because of these exemptions, only the largest 0.2% of estates in the US will have to pay any estate tax.
Prior to the introduction of a single Estate Duty by the Finance Act 1894, there was a system of five different inheritance taxes, that applied to either realty (land) or personalty (other personal property).
From 1694, Probate Duty, introduced as a stamp duty on wills entered in probate in 1694, applying to personalty.
From 1780, Legacy Duty, an inheritance duty paid by the receiver of personalty, graduated according to consanguinity
From 1853, Succession Duty, a duty introduced by the Succession Duty Act 1853 applying to realty settlements taking effect on the death of the settlor
From 1881, Account Duty applied as an anti-avoidance duty on lifetime gifts made to avoid paying Legacy Duty
From 1889, Temporary Estate Duty, an inheritance duty paid by the receiver, applying to both realty and personalty, graduated according to consanguinity
Maarten is looking to abolish the Inheritance Tax Ordinance, the Land Tax Regulation and the National Ordinance regulating the levy of surcharges on land tax assessments.
The change to the treatment of pensions under inheritance tax rules due to take force from 2027 will exacerbate existing delays in probate cases, according to a report from wealth manager and Financial Planner Quilter.
He also talked about eliminating the inheritance tax, noting that Maryland is the only state to have both an inheritance tax and an estate tax ... income tax brackets, and eliminate the inheritance tax.
Inheritance tax—LR 13CA, introduced by Bob Hallstrom of Syracuse, would eliminate the state’s inheritance tax if it is passed by the Legislature, and then passes a vote of the people in 2026.
Huston cited differences in the two states' tax ... "Those Minnesotans who are now Iowans would immediately have lower income taxes, lower sales taxes, lower business taxes, no inheritance tax," he said.
She will be advising clients on all private client matters including the drafting of wills, inheritance tax planning and the administration of estates ... trusts, wills and inheritance tax matters.”.
In addition to the winter fuel cuts, the Chancellor has imposed inheritance tax on lifetime savings, while the Prime Minister has denied some 3.8m “Waspi women” compensation or changes to the state ...
Jim Pillen focused primarily on reducing government spending, with less of an emphasis on new property tax relief than he's had in prior years ... Pillen left the door open for more tax relief, however.
Re ... 4 news story ... Yet inequality mushroomed in Trump’s first term, as did the national debt, thanks in part to lavish tax cuts for the rich. Biden inherited a pandemic-weakened economy with runaway inflation, high unemployment and stagnant wages.
Tom Bradshaw, the president of the NFU, said changes to inheritance tax were contributing to a loss of confidence among farmers in their ability to invest ... Farming, Inheritance tax, Labour Party, Steve Reed.
... to inheritance taxes, in particular those concerning SIPPs and inheritance tax on agricultural land, you might detect more than coincidental similarities to the recommendations of the Demos report.
He also talked about eliminating the inheritance tax, noting that Maryland is the only state to have both an inheritance tax and an estate tax ... income tax brackets, and eliminate the inheritance tax.
Under the changes, which come into force from April 2026, farms worth more than £1 million will be subject to a 20 per cent levy to a 20 per cent levy – half the usual inheritance tax rate ... tax.
The Chancellor is already under fire over Labour's plan to hit the wealthiest by making their families pay inheritance tax on the agricultural value of their land.
York News-Times
16 Jan 2025
York News-Times
16 Jan 2025