INHERITANCE TAX, the name given, in the United States, to a tax or charge upon property as it passes to heirs or legatees from a deceased person ; known in Great Britain as death duties. Such a tax was levied by the Federal government at the time of the American Civil War and again from the time of the World War on. All but a few of the States also levy inheritance taxes, the amount varying greatly according to the State, the amount of the estate, the relationship of receiver to the decedent, etc. The amount allowed as exemption also varies greatly from State to State.