Legal Definitions - collateral-inheritance tax

A collateral-inheritance tax is a type of tax that is imposed on the inheritance received by a person who is not a direct descendant or ancestor of the deceased. This tax is usually levied by the government to generate public revenue.

For example, if a person inherits a property from their uncle, they may be required to pay a collateral-inheritance tax on the value of the property they received.

This tax is different from an estate tax, which is imposed on the entire estate of a deceased person before it is distributed to their heirs. A collateral-inheritance tax is only imposed on the inheritance received by non-direct descendants or ancestors.

Overall, a collateral-inheritance tax is a way for the government to generate revenue from inheritances that are received by people who are not direct descendants or ancestors of the deceased.