That is typically not true in the US (2015). In the US there is an exemption on estate tax up to $5.43 Million and the transferred wealth above that amount is

That is typically not true in the US (2015). In the US there is an exemption on estate tax up to $5.43 Million and the transferred wealth above that amount is 40%. Compared to the highest regular income tax bracket is 39.6% and that is on the income above $464,850. So, it is essentially an income tax on the transfer -- except typically much much less. For example, an estate of $5.44 Million would be $4,000 (on the excess $10,000). Or an effective tax rate of 0.074% not 74% or 7.4% but 0.074%. Edit: So, yes, if you are transferring 500 Million or 50 Million then you will get close to the 40% tax (slightly higher than the regular 39.6% tax), but if you are transferring 5 Million or below there will be no tax.