Pärandimaks

Pärandimaks, often translated as inheritance tax or estate tax, is a form of taxation levied on the value of an estate or inheritance received by a beneficiary upon the death of an individual. The specific rules and rates of pärandimaks vary significantly between countries and jurisdictions. In many countries, the tax is paid by the estate before assets are distributed to heirs, while in others, it is the responsibility of the beneficiary to pay tax on the inherited assets.

The purpose of pärandimaks is often to generate revenue for the government and to address wealth inequality by taxing the transfer of large fortunes. Exemptions and allowances are typically in place, often for spouses, children, or close relatives, and there may be thresholds below which no tax is due. The valuation of assets for pärandimaks purposes can be complex, involving real estate, financial investments, and other valuable possessions. Inheritance tax planning is a common practice for individuals seeking to minimize the tax burden on their heirs, often involving trusts, gifts made during their lifetime, or other legal arrangements. The concept of pärandimaks is rooted in the idea that wealth accumulated by an individual may be subject to taxation when it passes to the next generation.