What type of tax is an inheritance tax?

An inheritance tax is classified as a form of wealth tax on the receiver of a bequest. This tax is imposed on the beneficiaries who receive assets or property from a deceased person’s estate. The amount of the tax is typically based on the value of the inheritance received by each beneficiary, meaning the more valuable the estate, the higher the tax obligation for the recipient. This characteristic clearly identifies it as a wealth tax since it assesses the transfer of wealth from one individual to another rather than taxing the income or the estate's overall value before distribution.

Other types of taxes mentioned in the options do not accurately represent how an inheritance tax functions. For instance, taxes on income received typically involve ongoing earnings as opposed to one-time transfers of wealth, while taxes levied on estates apply to the estate's total value before distributions to heirs, instead of being specific to the individual beneficiaries. Additionally, a fee for processing legal wills does not qualify as a tax, as it is a charge for services related to estate administration rather than a governmental levy on wealth or transfers.