estate tax

Friendly

Word: Estate Tax

Part of Speech: Noun

Definition: An estate tax is a type of tax that the government collects on the property and money that a person leaves behind when they die. This tax is usually calculated based on the total value of the deceased person's assets (like homes, cars, bank accounts, and other valuable items).

Usage Instructions:

• The term "estate tax" is typically used in discussions about taxation, inheritance, and financial planning.
• It is important to note that not everyone has to pay estate tax; it usually applies only to estates that are above a certain value.

Example Sentences:

1. "After her grandfather passed away, the family had to pay an estate tax before they could inherit his property."
2. "Many people plan their finances carefully to minimize the estate tax their heirs will have to pay."

Advanced Usage:

• The estate tax can vary by country or state, with different rules about what is included in the taxable estate and different rates applied.
• Some people use trusts or other financial tools to reduce the amount of estate tax that will be owed.

Word Variants:

• Estate (noun): The total property owned by a person, especially at the time of death.
• Tax (verb): To impose a financial charge or levy on a person or property.

Different Meanings:

• "Estate" can also refer to a large area of land, especially one used for farming or growing crops, while "tax" can refer to any compulsory financial charge imposed by the government, not just related to estates.

Synonyms:

• Inheritance tax (though this can have a slightly different meaning, as it is usually charged on the money received by heirs).
• Death tax (a colloquial term often used in political discussions).

Idioms and Phrasal Verbs:

• While there are no specific idioms or phrasal verbs directly related to "estate tax," you might encounter phrases like:
  • "Passing on an estate" meaning to transfer property after death.
  • "Settle an estate" meaning to resolve all financial matters after someone's death, including paying taxes.

Academic

Noun

1. a tax on the estate of the deceased person

Synonyms

• inheritance tax
• death tax
• death duty