A transfer tax imposed on a decedent's estate as such and not on the distributive shares is called.

A transfer tax imposed on a decedent's estate as such and not on the distributive shares is called.

• A. Inheritance tax
• B. Estate tax
• C. Gift tax
• D. Probate tax

Answer: (B)

This is an estate tax. It is a transfer tax assessed on the value of the decedent’s estate itself, at death, and paid by the estate before any distributions to heirs. It differs from an inheritance tax, which is charged to the individuals who receive property, and from a gift tax, which applies to transfers during life. Probate tax would relate to the probate process rather than the estate’s overall value. The estate tax sits on the whole estate as the unit of transfer, not on the recipients’ shares.

This is an estate tax. It is a transfer tax assessed on the value of the decedent’s estate itself, at death, and paid by the estate before any distributions to heirs. It differs from an inheritance tax, which is charged to the individuals who receive property, and from a gift tax, which applies to transfers during life. Probate tax would relate to the probate process rather than the estate’s overall value. The estate tax sits on the whole estate as the unit of transfer, not on the recipients’ shares.