Inheritance Tax vs Estate Tax, Inheritance Tax Exemptions
What is the inheritance tax rate? There is no such thing as a federal inheritance tax rate. The inheritance tax is imposed on a state level, and not all states have one. For example, Texas does not impose an inheritance tax, and some states refer to an estate tax and an inheritance tax as the same thing even though they are technically very different. Other terms you may hear used in place of inheritance tax are death duty in the United Kingdom, estate duty in Hong Kong, or stamp duty in Bermuda. Some places such as Australia and the British Virgin Islands do not currently have an inheritance tax nor have they ever had one. DIFFERENCE OF AN ESTATE TAX AND INHERITANCE TAX The difference between the estate tax and the inheritance tax lies with who is actually responsible for paying the taxes owed. WHO PAYS THE ESTATE TAX? With an estate tax it is the responsibility of the Administrator, or Executor, of the estate to pay the taxes.
