Legal Definitions - death duty

Definition: Death duty refers to a tax that is imposed on the estate of a deceased person. It is also known as an estate tax.

Example: When a wealthy person dies, their estate may be subject to death duty. For example, if a person's estate is worth $10 million and the death duty rate is 40%, then $4 million would need to be paid in death duty.

This example illustrates how death duty is a tax that is imposed on the estate of a deceased person. The amount of tax owed is based on the value of the estate and the applicable tax rate.