What are inheritance taxes imposed on?

Inheritance taxes are imposed specifically on the property that a decedent leaves behind after their death, which includes both personal property—such as bank accounts, stocks, and personal belongings—and real property, which encompasses land and any buildings on it. This type of tax is assessed on the value of the estate that is transferred to heirs or beneficiaries. Therefore, the focus is on the total value of the decedent's assets at the time of their passing, rather than on the circumstances of the surviving spouse or other specific conditions related to ownership and property acquisition.

The other options do not accurately capture the basis for inheritance taxes. For example, inheritance taxes do not apply universally to all property owned by a surviving spouse, as the assessment is based on the decedent's estate. Additionally, tax advantages for living property owners reflect a different aspect of tax law, unrelated to the taxation of an estate upon death. Lastly, the idea that inheritance taxes apply only to property purchased before death is misleading; these taxes pertain to the total value of a decedent's estate rather than the timing of property purchases.