The term inheritance tax is a term that applies to the tax imposed on those who inherit assets from a person who has died. This tax is applicable in many states and it is applicable throughout the United Kingdom. The tax rate for these taxes will vary depending on the value of the property that is transferred from the deceased person to the person who will now own the value. This is the person's beneficiary or their heir. There needs to be no relation, though. It is important not to confuse an inheritance tax with an estate tax. The estate tax is imposed on the estate's value as a total, while the inheritance tax is applied on the individual property that is inherited by an heir.