Legacy Tax Law and Legal Definition

Legacy tax is a tax upon an interest in personal property passing by will.

In 1797 Congress imposed legacy tax, which continued in force until 1802. The tax was collected by means of stamps placed upon the receipts given for the payment of the legacies or distributive shares of personal property, and was charged upon the legacies or distributive shares, and not upon the residuum of the personal estate. In 1862 a legacy tax was again imposed, like in character to that of 1797, and in the same act a probate duty was levied proportioned to the amount of the estate. In 1864 an act was passed increasing the rate of the probate duty on the whole estate, and the legacy tax on each particular legacy or distributive share, and adding a duty on the passing of real estate. [In re ESTATE OF MACKY, 46 Colo. 79, 91 (Colo. 1909)].