Business, Legal & Accounting Glossary
Taxes some states impose on people or organizations who inherit property from a deceased person’s estate. The taxes are based on the value of the inherited property.
Inheritance tax is also known as the estate tax. That is because the inheritance tax applies to anything of value, including real estate, jewellery, collectable items, and alike. The inheritance tax is also pertinent to intangible assets, such as life insurance and investments. Traditionally, the inheritance tax is known to be quite high, and sometimes even unaffordable. Thus, in order to minimize inheritance tax burdens, it is recommended to implement thorough estate planning (i.e. writing a will, creating trusts, etc.). With that in mind, many families purchase dual life insurance, which helps the beneficiaries reduce inheritance tax spending. In the United States, an inheritance tax is also referred to as a death tax.
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This glossary post was last updated: 22nd April, 2020 | 1 Views.