Which type of tax is imposed on the transfer of property when a person dies?

The type of tax imposed on the transfer of property when a person dies is the estate tax. This tax is levied on the total value of a deceased individual's estate before distribution to heirs. The estate tax aims to tax the wealth that is transferred upon death based on the fair market value of the deceased's assets, which can include real estate, investments, and personal property.

The rationale behind an estate tax is to ensure that large transfers of wealth are subject to taxation, especially given that the wealth may have accumulated without any significant taxation during the deceased's lifetime. The estate tax also can play a role in wealth redistribution and can fund governmental services.

On the other hand, income tax is related to earnings generated over an individual's lifetime, sales tax is applied to the sale of goods and services at the point of purchase, and gift tax is imposed on the transfer of assets from one individual to another while they are alive. Therefore, while all these taxes deal with the transfer of wealth in some form, only the estate tax is specifically created to address the situation of property transfer upon death.