estate taxes

estate tax

A tax on the estate of the deceased before any distribution is made to the heirs. A federal unified gift and estate tax provides an exemption before any tax is paid. Although some states also levy an estate tax, it is generally at a much lower rate than the federal tax. Compare inheritance tax. Also called death tax.

Main Entry: estate tax
Function: noun
: 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