estateproperty law

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 evaluated above a statutory amount and is applied at graduated rates. Estate tax is usually easier to administer than inheritance tax levied on beneficiaries, because only the value of the entire estate need be ascertained.

The estate tax was first instituted in Great Britain in 1889 as part of a broad death tax program. It was first imposed in the United States in 1898 to help finance the Spanish-American War, was repealed in 1902, and was reimposed in 1916 to help finance mobilization for World War I.

In most countries death is considered a taxable event, with justification for such taxes standing on legal and social grounds. Legally, the tax can be understood as a fee for the privilege of passing property to heirs and beneficiaries after death. Socially, the tax tends to reduce inequalities in the distribution of wealth and provides an opportunity to break up large estates. Although the taxes in the United States represent a source of revenue for the state (inheritance taxes) or federal (estate taxes) government, the amounts of revenue they produce are among the lowest, and their relative importance has dwindled against the growth of income, sales, and excise taxes.

Various means have been used to avoid or reduce the estate tax, including gifts, generation-skipping trusts, and the creation of limited interests in the estate. Critics of the estate tax, who sometimes refer to it as a “death tax,” have claimed that it often forces the sale of small family-owned farms and businesses, because the tax is based on the value of the estate but there may not be enough cash available to pay it. Some legislation has been introduced to mitigate this effect of estate tax laws.

in Spanish America, a large landed estate, one of the traditional institutions of rural life. Originating in the colonial period, the hacienda survived in many places late into the 20th century. Labourers, ordinarily Indians, who worked for hacendados (landowners) were theoretically free wage earners, but in practice their employers were able to bind them to the land, especially by keeping them in an indebted state; by the 19th century probably up to a half of the rural population of Mexico was thus entangled in the peonage system. The counterparts of the hacienda in the Río de la Plata (Argentina and Uruguay) region and in Brazil are the estancia and the fazenda, respectively. Hacendados constituted a squirarchy, in whose hands were the reins of local government. In Bolivia until 1952, hacendados had retained many of the privileges inherited from colonial times, and the same has been true in 20th-century Ecuador. In Mexico many of the great estates were broken up as a result of the Mexican Revolution of 1911.

any of the great feudal estates acquired by Portuguese and Goan traders and soldiers in the valley of the Zambezi River in what is now Mozambique. Begun in the 16th century as an attempt at colonization, the prazo system was formalized in the mid-17th century. While giving titular obedience to the Portuguese crown, the prazo-holders built up private armies and virtually independent fiefdoms.