What is the difference between an inheritance tax and an estate tax?

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1270957

2026-03-04 13:25

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an inheritance tax is based on the portion of an estate

an estate is a federal tax on all the wealth a person leaves

== ans ==

There may not be an exact answer because some depends on your own, or the specific IRS or State definition of things.

But generally:

An inheritance tax would be on the value of what someone receives from the estate of someone who dies. Paid by the recipient.

The estate is actually the continuation and winding up of the deceased persons affairs, and they may be taxed before what is left is distributed to those inheriting.

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