A state tax applied to the transfer of wealth from one generation to the next.
It is applied to Heirs and Beneficiaries who Inherit a deceased person's Assets, real estate property, money or other valuables.
Inheritance tax is usually calculated as a percentage of the value of the assets being transferred but can vary depending on state laws.
There is no federal inheritance tax, but as of 2023 six states have inheritance tax: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania.
Inheritance tax is different from Estate Tax, which is a tax applied to the total value of a deceased person's estate, regardless of whether if it is transferred to Heirs or Beneficiaries.