inheritance tax

/ɪnˈhɛrətəns tæks/

Other forms: inheritance taxes

If a long-lost relative dies and leaves you money or property in her will, you might need to pay inheritance tax. In the U.S., most states have some form of inheritance tax.

When someone inherits assets from the estate of a relative or acquaintance after they've died, most states and countries levy some form of tax on them. The amount depends where you live, how much money you inherit, and sometimes your relationship with the deceased person. If your elderly neighbor leaves his beloved old typewriter to you, it's not likely you'll owe much inheritance tax, if any.

Definitions of inheritance tax

1. noun

   a tax on the estate of the deceased person
   synonyms: death duty, death tax, estate tax

   type of:

   transfer tax

   any tax levied on the passing of title to property