Inheritance Tax - Varieties of Inheritance and Estate Taxes

Varieties of Inheritance and Estate Taxes

• Belgium, droits de succession or successierechten (Inheritance tax). Collected at the federal level but distributed to the regional level.
• Bermuda: stamp duty
• Czech Republic: daň dědická (Inheritance tax)
• Finland: perintövero (Finnish) or arvskatt (Swedish) (Inheritance tax)
• France: droits de succession (Inheritance tax)
• Germany: Erbschaftssteuer (Inheritance tax) Smaller bequests are exempt, i.e. 20 000€ - 500 000€ depending on the status of the beneficiary. Bequests larger than these values are taxed from 7% to 50%, depending on the status of the beneficiary and the size of the taxable amount (sections 16 and 19 Erbschaftsteuer- und Schenkungsteuergesetz)
• Ireland: Inheritance tax (Cáin Oidhreachta)
• Italy: tassa di successione (Inheritance tax). Abolished in 2001., and reestablished in 2006. €1,000,000 exemption on a bequest to a spouse or child, and a maximum rate of 8%.
• The Netherlands: Successierecht (Inheritance tax)
• Norway: arveavgift (inheritance and gift tax). Smaller bequests are exempt. Bequests larger than a certain value are taxed from 6% to 15%, depending on the status of the beneficiary and the size of the taxable amount. See Taxation in Norway.
• Switzerland has no national inheritance tax. Some cantons impose estate taxes or inheritance taxes.
• United Kingdom: see Inheritance Tax (United Kingdom) (actually an estate tax)
• United States: see Estate tax in the United States

Some jurisdictions formerly had estate or inheritance taxes, but have abolished them:

• Australia abolished the federal estate tax in 1979.
• Austria abolished the Erbschaftssteuer in 2008. This tax had some of the features of the gift tax, which was abolished at the same time.
• Canada: abolished inheritance tax in 1972.
• Hong Kong: abolished estate duty in 2006 for all deaths occurring on or after 11 February 2006. (See Estate Duty Ordinance Cap.111)
• India: had an estate tax from 1953 to 1985.
• Israel: abolished inheritance tax in 1981.
• Louisiana: abolished inheritance tax in 2008, for deaths occurring on or after 1 July 2004.
• New Hampshire: abolished state inheritance tax in 2003; abolished surcharge on Federal estate tax in 2005.
• New Zealand abolished estate duty in 1992.
• Russia abolished inheritance tax in 2006.
• Singapore: abolished estate tax in 2008, for deaths occurring on or after 15 February 2008.
• Sweden: abolished inheritance tax in 2005.
• Utah: abolished inheritance tax in 2005.

Some states of the United States impose inheritance or estate taxes (see Inheritance tax at the state level):

• Indiana: The spouse of a decedent is 100% exempt from paying inheritance tax. Parents, children,grandparents,grandchildren,and other lineal ancestors and lineal descendants of the decedent,as of July 1, 2012, are exempt from taxation on the first $250,000 of inheritance. Tax is on a sliding scale that starts at 1% to 10% of the net inheritance of each individual. More information may be obtained by referring to IH-6, Indiana's inheritance tax instructions.
• Iowa: Inheritance is exempt if passed to a surviving spouse, parents, or grandparents, or to children, grandchildren,or other "lineal" descendants. Other recipients are subject to inheritance tax, with rates varying depending on the relationship of the recipient to the deceased.
• Kentucky: The inheritance tax is a tax on a beneficiary's right to receive property from a decedent's estate. It is imposed as a percentage of the amount transferred to the beneficiary. Transfers to "Class A" relatives (spouses, parents, children, grandchildren, and siblings) are exempt. Transfers to "Class B" relatives (nieces, nephews, daughters-in-law, sons-in-law, aunts, uncles, and great-grandchildren) are taxable. Transfers to "Class C" recipients (all other persons) are taxable at a higher rate. Kentucky imposes an estate tax in addition to its inheritance tax.
• Maryland
• Nebraska
• New Jersey
• Oklahoma
• Pennsylvania: Inheritance tax is a flat tax on the value of the decedent's taxable estate as of the date of death, less allowable funeral and administrative expenses and debts of the decedent. Pennsylvania does not allow the six month after date of death alternate valuation method that is available at the federal level. Transfers to spouses exempt. Transfers to grandparents, parents, or lineal descendants are taxed at 4.5%. Transfers to siblings are taxed at 12%. Transfers to any other persons are taxed at 15%. Some assets are exempted, including life insurance proceeds. The inheritance tax is imposed on both residents and nonresidents who owned real estate and tangible personal property in Pennsylvania at the time of their death. The Pennsylvania Inheritance Tax Return (Form Rev-1500) must be filed within nine (9) months of the date of death.
• Tennessee: