estate tax

noun

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 sense 1

Examples of estate tax in a Sentence

Recent Examples on the Web

New Jersey had an estate tax, but that was repealed in 2018, leaving Maryland as the only state with both types of tax. — Liz Weston | Nerdwallet.com, oregonlive.com, "Liz Weston: Estate and inheritance taxes are not the same," 16 June 2019 New Jersey had an estate tax, but that was repealed in 2018, leaving Maryland as the only state with both types of tax. — Liz Weston, latimes.com, "How to boost your credit score before you buy a house," 9 June 2019 Booker would pay for his plan by repealing the latest estate tax cuts and putting those rates back to 2009 levels, which taxed income over $3.5 million per year at a 45 percent rate. — Leigh Ann Caldwell, NBC News, "Booker unveils housing affordability plan," 5 June 2019 And the estate tax was so much, the children would have to go out and borrow a lot of money from unfriendly bankers, in many cases. — Calvin Woodward, Fortune, "Fact Checking Trump's Claims on the Economy and 2020 Election," 17 June 2019 As the name implies, estate taxes are taxes levied on the dead person’s estate. — Liz Weston | Nerdwallet.com, oregonlive.com, "Liz Weston: Estate and inheritance taxes are not the same," 16 June 2019 And the estate tax was so much, the children would have to go out and borrow a lot of money from unfriendly bankers, in many cases. — Hope Yen And Calvin Woodward, chicagotribune.com, "Fact check: Trump's statements on Iran, trade and the wall range from a little off to flatly false," 15 June 2019 Their owners can charge no more than the Maximum Base Rent (MBR), a figure derived from utility charges, real-estate taxes, maintenance fees, and return on investment. — James Sutton, National Review, "New York’s Insane Rent-Reform Package Will Make the Housing Market Worse for Everyone," 14 June 2019 As the name implies, estate taxes are taxes levied on the dead person’s estate. — Liz Weston, latimes.com, "How to boost your credit score before you buy a house," 9 June 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'estate tax.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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12 Jul 2019

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The first known use of estate tax was in 1928

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More Definitions for estate tax

estate tax

noun

Financial Definition of estate tax

What It Is

An estate tax is levied on assets inherited by the heirs to a deceased person's estate.

How It Works

The estate tax is applied differently according to U.S. Federal and state laws as well as international law. Typically, estate taxes are only levied once a certain threshold, known as the exclusion limit, has been reached.

Estate taxes are not applicable if a person bequeaths (transfers) the assets from the estate to a living spouse. This type of transfer is known as the unlimited marital deduction. However, in the event that the spouse dies, the beneficiaries may be required to pay estate taxes if the exclusion limit is exceeded.

[InvestingAnswers Featured Article: A Simple Plan to Avoid Estate Taxes]

Why It Matters

Estate taxes, like other taxes on unearned incomes, are a source of revenue for governments that use it to finance various projects. The issue of the estate tax has become highly politicized, and it is sometimes referred to as the "death tax" by people who oppose it.

But estate taxes are not inevitable. In the U.S., there are many different estate planning techniques that individuals can use to reduce the size of their taxable estates.

[InvestingAnswers Tutorial: Reduce Your Federal Estate Tax With These 4 Powerful Estate Planning Tools]

Source: Investing Answers

estate tax

noun

English Language Learners Definition of estate tax

: 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

See the full definition for estate tax in the English Language Learners Dictionary

estate tax

noun

Legal Definition of estate tax

: an excise 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

— called also succession tax

— see also unified transfer tax — compare gift tax, inheritance tax