Define: Inheritance Tax

Business, Legal & Accounting Glossary

Definition: Inheritance Tax



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Full Definition of Inheritance Tax


Inheritance tax is the tax imposed on the heirs of the estate upon the transfer of assets from the deceased person.

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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Definition Sources


Definitions for Inheritance Tax are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February, 2020