A state tax levied on the right of an heir to receive all or part of the estate and life insurance proceeds of a deceased person is called a(n) ____________ tax.

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An inheritance tax is a state tax imposed on the right of an heir to receive all or part of the estate and life insurance proceeds of a deceased person. This tax is levied at the state level and can vary depending on the state's tax laws. Other options like estate income, trust income, gift would not be the appropriate term for this type of tax. The term "estate" is used for the entire property a person leaves behind, while "inheritance" is used for the right of an heir to receive a part of that property.

A State Tax Levied on the Right of an Heir