Which tax is imposed on the right of a decedent to transmit his estate to heirs?

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

Answer: (D)

Inheritance tax is the tax imposed on the right of a decedent to transmit his estate to heirs. It is charged to the beneficiary who receives property from the deceased, with the amount typically based on the value of what is inherited and the beneficiary’s relation to the decedent. This focuses on the transfer to heirs rather than on the estate’s value before distribution (estate tax) or on gifts made during life (donors tax). It also differs from a general transfer tax, which is a broader term for various kinds of property transfers. So, the tax that reflects the decedent’s right to pass property to heirs is the inheritance tax.