Written by attorneys · grounded in primary & secondary sources — see below
A generic term for taxes occasioned by death. The most common types are the estate tax, imposed by the federal government and several states on the value of the decedent's estate as a whole, and inheritance taxes imposed by some states on the amount passing to each successor at graduated rates that vary by the successor's relationship to the decedent.
Sources & Authorities
How it applies
Common Examples
2
Closing Statement Omits Death Taxes
Demetrius Douglas died owning several rental properties. His daughter Denise Donovan, appointed personal representative in an unsupervised proceeding, paid all administration expenses and filed a verified closing statement six months after appointment. The statement asserted full administration and distribution of assets but made no reference to any death taxes or arrangements for them. The court rejected the statement because the personal representative had not accounted for payment or disposition of death taxes as required for closure.
Will Directs Payment of Death Taxes
Dwight Dorsey's will directed payment of all death taxes from the residue before any distribution to beneficiaries. After his death the executor computed the federal estate tax and applicable state inheritance taxes on the gross estate and satisfied them from residuary assets. The remaining property then passed to the named legatees free of further tax claims arising from the decedent's death.
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Uniform Acts
Restatements
Hornbooks
Study Supplements
Commissioner of Internal Revenue v. Estate of Bosch387 U.S. 456, 465 (1967)
Common questions
Frequently Asked
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What is the difference between an estate tax and an inheritance tax?+
An estate tax is levied on the value of the decedent's estate as a whole. An inheritance tax is levied on the amount each beneficiary receives, with rates that often favor close relatives over unrelated takers.
Why must a personal representative address death taxes when closing an estate by verified statement?+
The closing statement must certify that the estate has been fully administered, which includes payment or other disposition of all death taxes. Failure to account for them prevents the statement from satisfying the statutory conditions for closure.
Can a personal representative close an estate without paying death taxes if the distributees agree to assume liability?+
The representative may distribute subject to possible liability with the distributees' agreement, but the closing statement must expressly state that arrangement. Silence or omission regarding death taxes still renders the statement defective.
387 U.S. 456, 465 (1967)Family Law
…Connecticut. The will was executed in 1958 and directed the payment "out of my estate my just debts and funeral expenses and any death taxes which may be legally assessed . . . ." It further directed that the "provisions of any statute requiring the apportionment or proration of such taxes among the beneficiaries of this will or…