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
I don't love, I don't give, I don't care' cause I've already been there I don't want, I don't need, I don't take, 'cause I had it all I don't guess, I just know, what this is, is a place to die from I am not what you see, you are real but not for real I'm not scared, I'm not high, I'm a man and I'm all right We are here, we are gone, and the rest are left to wonder What is life, in the hand of illusion, what is life to a man in confusion What is right, for a life that is losin', what is time, what is, what is, what is? Take look, open up, look inside, what is there In your heart, in your mind, in your soul there's the answer Why you want, why you need, the side effects of what you see What is life, in the hand of illusion What is life, to a man in confusion What is right for a life that is losin', what is time, what is, what is, what is? I don't pay, I just know what this is,
(MENAFN - AsiaNet News) Sam Pitroda, Chairman of the Indian Overseas Congress, stirred up a storm after he advocated for the reintroduction of the inheritance tax as a reform to redistribute wealth ... .
The Treasury is raking in a record amount from inheritance tax (IHT) and more families than ever must pay the death levy thanks to frozen thresholds and inflated house prices ... The tax is a ...
The Conservatives are said to be discussing scrapping inheritance tax in a bid to win over voters at the next election. But what is the tax and who are the Tories hoping to win over by scrapping it? ... .
