Estate Tax Act

The Estate Tax Act is a law that specifies how estate taxes are calculated and collected on the transfer of a person’s assets after they pass away. It sets out the exemptions, rates, and procedures for valuing estates, ensuring that a portion of the estate's value is paid to the government if it exceeds certain thresholds. The intent is to generate revenue from sizable estates and promote equitable wealth distribution, while allowing smaller estates to pass to heirs without tax. Essentially, it governs the legal framework for taxing an individual’s estate at the time of death.