Inheritance Tax (Noun)
Meaning
A tax on the estate of the deceased person.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The wealthy family was devastated by the news that their late patriarch's inheritance tax bill was substantially higher than expected.
- Inheritance tax laws vary from state to state, so it's essential to understand the specific regulations in your area.
- Many people strategically use trusts and charitable donations as part of a long-term plan to minimize their estate's future inheritance tax liability.
- New proposals have been put forward to abolish the federal inheritance tax, sparking heated debates among politicians and voters alike.
- Since the inheritance tax is usually paid by the estate before any inheritances are distributed, it often significantly depletes the assets available for heirs.