What is the death tax and who does it affect?

Answer 1

The 'Death Tax' is a more accurate term for 'Estate tax'. Technically it is paid by the estate (remaining assets of the deceased). Those most affected are heirs of small business owners. The value of the business often causes the estate to owe taxes without providing sufficient cash to pay them. In this case, the business may have to be sold to pay taxes.

Someone mentioned the inheritance tax. This is a separate tax imposed by some states, but not the federal government, on the heirs who inherit the estate.

Answer 2

The term death tax is referring to the taxes imposed on ones estate after their death. At present estates under $2 million are exempt from Federal Estate Tax. Each state may impose an estate tax which would be in addition to the Federal Estate Tax and may have different limits on any amount that is exempt.

Answer 3

The "death tax" is another double taxation issue that should be illegal, but is not.

Many people think the "death tax" won't affect them because they (or their parents) are not "rich". But if you own a couple home for 30 or so years and have a few investments, you could quickly have an estate that is eligible for the tax.

I just don't understand how our government can steal 50% of someones assets when the tax has already been paid on them, time and time again.

Stupid taxes.

Answer 4

The "death tax" is charged to the estates of people that have died.

It generally affects people with taxable estates of more than $2 million.

If you want to know more, you'll need to pay.

Answer 5

it is also known as an inheritance tax. Usually, children, grandchildren, and spouses are exempt from the tax, unless the estate is considerable size. If you are a sibling or niece or aunt or uncle and inherit, you will be paying tax.