Definition - What does Transfer Tax mean?
A transfer tax refers to a tax that is imposed by the government upon the transfer of property from one person or entity to another person or entity. When a transfer tax is imposed, the person who is receiving the transferred property cannot enjoy that property until he or she has paid the transfer taxes.
Justipedia explains Transfer Tax
The most well-known type of transfer tax in the United States is the estate tax. Estate tax is imposed when a deceased’s property is transferred to whoever is inheriting the property through the deceased’s will or through the law of intestacy. Additionally, both the federal government and the state government can both impose estate taxes. The 2015, the United States will be exempting the first $5.43 million dollars from estate tax, but any money inherited over that amount will be taxed by 40%.