Inheritance Tax
Definition:
Inheritance tax is a type of tax that is paid on money or property that you receive when someone has died. This tax is usually calculated based on the value of the estate (all the money and property) left behind by the deceased person.
Usage Instructions:
- Inheritance tax is a noun. Use it when talking about the money that must be paid to the government after someone dies and leaves you their possessions. - You can use it in sentences like: "I had to pay inheritance tax on the house my uncle left me."
Example Sentence:
"When her grandmother passed away, she learned that she would have to pay inheritance tax on the inheritance she received."
Advanced Usage:
- In some countries, there are different rates of inheritance tax depending on how closely related you are to the deceased. For example, children might pay a lower tax rate compared to distant relatives.
Word Variants:
- Inherit (verb): To receive money or property from someone who has died.
- Example: "He will inherit his father's business." - Inheritance (noun): The money or property received from someone who has died.
- Example: "Her inheritance allowed her to buy a new car."
Different Meanings:
- "Inheritance" can also refer to anything that is passed down from one generation to another, not just money or property (like traditions or values).
Synonyms:
- Estate tax - Death tax (though this term is less commonly used)
Idioms and Phrasal Verbs:
- There are not many specific idioms or phrasal verbs directly related to inheritance tax, but you may hear phrases like "pass on the legacy," which refers to leaving something of value (not necessarily financial) to the next generation.
Summary:
Inheritance tax is a tax you must pay on what you receive from someone who has died.