In public finance and taxation, what is the standard name for a tax levied on inherited property that passes from one generation to another after death?

Introduction / Context:
Governments can tax wealth and property in different ways, including taxes on income, consumption, gifts and inheritance. The question focuses on the specific tax that is imposed when property is transferred after the death of the owner. Knowing the standard term for this type of tax is important for understanding discussions on wealth distribution and inheritance laws.

Given Data / Assumptions:

• The tax is levied on inherited property.
• The transfer occurs after the death of the original owner.
• Options include excise duty, estate duty, gift tax, and sales tax.
• We assume conventional legal and public finance terminology.

Concept / Approach:
A tax on inherited estates is usually called estate duty or inheritance tax, depending on the jurisdiction. The key feature is that the tax is triggered by the death of the owner and the transfer of the property to heirs. Excise duty is imposed on production of goods, gift tax on voluntary transfers made during a person lifetime, and sales tax on the sale of goods in commerce. Thus, only estate duty matches an inheritance situation.

Step-by-Step Solution:
Step 1: Identify that the tax is associated with inheritance on death, not with normal commercial sales.Step 2: Recall that estate duty is the well known term for a tax on the value of an estate passing to heirs.Step 3: Recognise that excise duty relates to manufacturing or production of goods like alcohol or petroleum.Step 4: Note that gift tax applies to transfers between living persons, not transfers caused by death.Step 5: Conclude that estate duty is the correct term for a tax on inheritance.

Verification / Alternative Check:
Textbooks of public finance list estate duty and gift tax together as two different types of wealth transfer taxes. Estate duty arises at death and is calculated on the estate value, while gift tax is charged on voluntary transfers during life beyond certain thresholds. Excise duty and sales tax are presented as taxes on production and consumption, not on inheritance. This classification confirms that estate duty is the correct answer here.

Why Other Options Are Wrong:
Excise duty is wrong because it is charged on manufactured goods, often collected at the factory gate, and has no link to inheritance. Gift tax is also incorrect in this context because it applies to living transfers, not to transfers triggered by death. Sales tax is levied on the sale of goods to consumers at the point of transaction, again unrelated to inheritance. Hence, none of these terms captures the estate transfer nature of the tax described.

Common Pitfalls:
Students sometimes confuse gift tax and estate duty, especially because both relate to property transfers. To keep them separate, remember that gift tax is about voluntary gifts while the donor is alive, whereas estate duty concerns what happens to property after death. Another pitfall is to pick sales tax out of habit, but it always refers to ordinary buying and selling, not to inheritance matters.

Final Answer:
The tax levied on inherited property after the owner death is commonly known as estate duty.