Inheritance Tax Definition
Inheritance tax is a tax that is levied on the value of an inheritance. The rate of inheritance tax varies from country to country, but it is typically a percentage of the value of the estate. Inheritance tax is sometimes also referred to as estate tax.
Inheritance tax is generally payable by the beneficiaries of an inheritance, although in some cases it may be payable by the executor of the estate. In some jurisdictions, inheritance tax may be exempt if the beneficiary is a close relative of the deceased.
Inheritance tax can be a significant burden for beneficiaries, especially if they are not expecting it. For this reason, it is important to understand the inheritance tax laws in your jurisdiction before you accept an inheritance.
