estate tax


estate tax

noun

: a tax that you pay on the money and other property that comes to you because someone has died : a tax on an estate that you inherit

Full Definition of ESTATE TAX

:  a tax in the form of a percentage of the taxable estate that is imposed on a property owner's right to transfer the property to others after his or her death — compare inheritance tax 1

First Known Use of ESTATE TAX

1928

estate tax

noun    (Concise Encyclopedia)

Levy on the value of property changing hands at the death of the owner, fixed mainly by reference to its total value. Estate tax is generally applied only to estates whose value exceeds a set amount, and it is applied at graduated rates. An estate tax was first instituted in the U.S. in 1898 to help finance the Spanish-American War; it was repealed in 1902 but permanently reimposed in 1916, initially to help finance mobilization for World War I. Methods of avoiding estate tax (e.g., gifts and trust funds) were largely foiled by the U.S. Tax Reform Act of 1976.

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