When a person dies, the property that he or she leaves for others may be subject to tax. An estate tax is a tax on the deceased person’s estate. Most governments levy estate taxes before the deceased person’s property passes to heirs.
An inheritance tax also taxes the value of the deceased person’s estate, but after the estate passes to heirs. The inheritors pay the tax.
Estate and inheritance taxes are sometimes collectively called death taxes.
A gift tax is a tax on the transfer of property between living people.