Estate Tax
Also called: death tax, inheritance tax, estate duty
Estate tax is levied on the value of assets transferred at death above an exemption threshold. In the US that federal exemption is in the millions, so it touches a very small share of estates — but several states levy their own at far lower thresholds, and an inheritance tax charged to the recipient works differently again. Assets left to a spouse or charity are generally exempt, which is the foundation of most estate planning.