It's always useful to know the difference between the 2 death taxes - inheritance tax and estate tax (estate duty) before we start our retirement planning, estate planning or will planning.

Estate Duty or Estate Tax

Estate Duty or Estate Tax is a government tax which arises on the death of an individual or a death tax. An estate tax is a tax imposed on the deceased’s estate in its entirety. The executor is responsible for paying this estate tax to the government. It is different from inheritance tax.


Deceased's Estate ==> Pay Estate Duty to Government + other expenses ==> Distribute to Beneficiaries


Inheritance Tax

Inheritance Tax is a government tax which arises on the death of an individual or a death tax. Unlike estate duty, an inheritance tax is a tax imposed on the beneficiaries who receive benefits or property from the deceased. Each beneficiary is responsible for paying their own inheritance tax.

Deceased's Estate ==> Pay other expenses ==> Distribute to Beneficiaries ==> Beneficiaries to pay individual Inheritance Tax



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