What is an inheritance tax?

suddenly in American history, rich families with names like Carnegie, Rockefeller and Vanderbilt dominated huge private wealth. Whenever Senior Vanderbilt died, younger Vanderbilt immediately inherited his home and all assets inside. Federal and state governments could only tax what the farm decided to liquidate. In an effort to create a populist policy to "share wealth", the progressive congress decided to collect a new tax for anyone who inherited substantial assets or other assets through legal will and the first inheritance tax was born. Both work on roughly the same principle. Whenever the individual is named in the legal will as the recipient of the assets from the estate, it may be responsible for the payment of this tax. This is not the same as the tax collected on the property itself, but simply to take the ownership for the right. The inherited property is evaluated and, depending on its value and the relationship of the heir to the deceased, there may be a tax or may not be collected.

This is where the laws on inheritance taxes become very murky and controversial. Currently, this tax has more exceptions and exemptions than most other tax laws. First, the value of the property or the cash asset must exceed $ 1.5 million in the US (USD) to even qualify for the inheritance tax. This immediately eliminates the most inherited properties. The relatives of the "class A", including spouses, children, parents and grandchildren, are also considered to be liberation. The worst scenario would be that the favorite cousin inherited $ 3.5 million in Hamptons in Hamptons. The cousin would face up to 50% of real estate tax, which would mean an immediate debt of $ 1 million or more.

Somlidé refer to this as "death tax", but it is not a completely accurate description. The taxes collected after the sale of assets are worth the items sold - this would be considered a form of death tax. The inheritance tax is based on the value of an asset that can ormay not be sold. The original intention of the law was to reduce the wealth of robbers and extremely rich private landowners.

Only the selected number of citizens is influenced by a hereditary tax, but it is still a highly charged political problem. Other nations have removed or strongly reduced their own tax versions, but the United States government continues to maintain a form of real estate tax in books. Removal can help many of the richest citizens in the country remain rich, but the general population is not afraid of this Tax Act.