Wealth Transfer Tax

Wealth Transfer Tax refers to taxes imposed on the transfer of wealth from one individual to another, often occurring through inheritance or gifting. This tax applies when someone passes on assets, such as money, property, or investments, to their heirs or beneficiaries. Governments impose this tax to generate revenue and prevent the accumulation of wealth within a small group over generations. In many countries, there are exemptions and thresholds, meaning only estates or gifts above certain values are taxed. Understanding this tax is important for effective estate planning and management of one’s financial legacy.