This tax is imposed on the right of a deceased person to transmit his estate to his lawful beneficiaries upon his death.

This tax is imposed on the right of a deceased person to transmit his estate to his lawful beneficiaries upon his death.

• A. Estate Tax
• B. Donors Tax
• C. Inheritance Tax
• D. Transfer Tax

Answer: (C)

The main idea is that this tax is charged on the right of a deceased person to transfer assets to his beneficiaries after death. Inheritance tax is the tax that heirs pay on the property they receive from a deceased person; it targets the transfer itself as it passes to the beneficiaries, not the value of the estate while the person was alive or gifts made before death. This differs from an estate tax, which is assessed on the value of the deceased’s entire estate itself, typically before any distribution to heirs. Donors tax applies to gifts given during the donor’s life, not to transfers that occur at death. Transfer tax is a broader term that can cover various transfers, but the specific tax described—imposed on the right to transmit to rightful beneficiaries upon death—is inheritance tax.

The main idea is that this tax is charged on the right of a deceased person to transfer assets to his beneficiaries after death. Inheritance tax is the tax that heirs pay on the property they receive from a deceased person; it targets the transfer itself as it passes to the beneficiaries, not the value of the estate while the person was alive or gifts made before death.

This differs from an estate tax, which is assessed on the value of the deceased’s entire estate itself, typically before any distribution to heirs. Donors tax applies to gifts given during the donor’s life, not to transfers that occur at death. Transfer tax is a broader term that can cover various transfers, but the specific tax described—imposed on the right to transmit to rightful beneficiaries upon death—is inheritance tax.