Estate Tax

In the United States of America, the estate tax is a kind of tax that they impose upon the transfer of the “taxable estate” of a deceased individual. In such a case, whether such property is transferred with the help of a will, or in accordance to the state laws of intestacy. The estate is but a part of the Unified Gift and Estate Tax system that is currently being run in the United States. Included in the system is its other part, which is the gift tax. The gift tax imposes a certain type of tax upon transfers of property during one person's lifetime. The gift tax prevents estate tax from being avoided in such cases where a person wants to give away their estate right before they pass away.

Many states, aside from the federal government, also impose an estate tax. The state version of the tax is also called an inheritance tax if not as the estate tax. The term “death tax” has also been widely used since the 1990s by those who wanted to have the estate tax removed. This is because the terminology that is used in discussing certain political issues may affect the popular opinion.