What is inheritance tax?

   In social science, Inheritance Tax is a special tax levied on property at the death of the owner. As in the case of an income tax several terms require explanation. It applies to property inherited by law and to bequests. Direct inheritance rests on the relationship between parent and child. Property going to a grandparent, parent, child, or grandchild of the deceased comes under the designation. Property going to brother, sister, uncle, aunt, nephew, niece, or to their lineal descendants is considered collateral inheritance. Small estates are, as a rule, exempted from paying an inher­itance tax. A progressive tax is one the rate of which increases with the value of the inheritance. It is so graduated as to fall most heavily on the largest inheritances.