What type of tax is imposed on the real and personal property of a decedent?

The correct answer is estate taxes, which are specifically imposed on the transfer of a decedent's assets upon death. Estate taxes are based on the total value of the deceased person's property and assets, which may include real estate, personal property, cash, and investments. This tax is assessed before the assets are distributed to the heirs or beneficiaries, and it is typically calculated on the gross value of the estate, minus any allowable deductions, such as debts and certain expenses.

These taxes are distinct from income tax, which is levied on earnings, and capital gains tax, which applies to profits from the sale of an asset. Property tax generally refers to taxes imposed on real estate owned by an individual, based on the assessed value of that property, but does not apply to an estate as a whole when transferred after death. Estate taxes specifically address the financial implications of transferring ownership of the decedent's estate, highlighting the need for effective estate planning to possibly minimize this tax obligation.