Posted in Finance, Accounting and Economics Terms, Total Reads: 287
Definition: Death Taxes
These are the taxes that are imposed by the government on someone’s property upon their death. These taxes are passed on to the beneficiary of the property according to the will of the deceased person.
The term death tax was first coined in 1990. It was used for describing estate and inheritance taxes by the people who wanted these taxes to be eliminated. Estate tax is the tax that is applicable to the total value of the estate of the person in an incidence of death whereas inheritance tax is the tax that is applied to the property that has been passed in case of an inheritance to the heir.
The amount of death tax to be paid is based on the value of the property at the time of the death of the owner.