Estate tax

An estate tax is imposed on a deceased person’s taxable estate before assets pass to heirs or other beneficiaries. The estate generally pays it, subject to jurisdiction-specific exemptions and rules.

Gross estate: The total value of property and certain interests included in a deceased person’s estate for tax purposes. It is the starting pool from which estate-tax deductions and exemptions are applied.
Inheritance tax: A tax imposed on a person who receives property from a deceased person. Unlike estate tax, its liability generally falls on beneficiaries rather than the estate.
Estate planning: The preparation for managing and transferring a person’s assets during life and after death. Planning can reduce tax exposure while arranging how assets reach beneficiaries.
Wealth inequality: The unequal distribution of assets and net worth among individuals or households. Estate taxation is debated as a way to limit the persistence of concentrated wealth across generations.
Inheritance tax in the Roman Empire: A tax on inheritances established under the Roman emperor Augustus to fund military pensions. Roman inheritance taxation is an early precedent for taxing transfers at death.
Taxable estate: The value remaining after allowable deductions are subtracted from a gross estate. Estate tax is generally calculated on this amount rather than the full gross estate.
Gift tax: A tax on certain transfers of property made while the giver is alive. It addresses lifetime transfers, which can affect attempts to reduce an estate before death.
Charitable remainder trust: An irrevocable trust that pays income to designated beneficiaries before transferring the remainder to charity. Charitable transfers through trusts may qualify for estate-tax deductions.
Intergenerational wealth transfer: The transfer of assets, resources, or economic advantage from one generation to another. Estate tax changes the amount of wealth inherited by the next generation.
Stamp Act 1694: An English law that imposed stamp duties on legal documents, including some wills and probate instruments. It shows an early English method of raising revenue around the transfer of estates.

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