Death taxes is a term that was coined by those opposed to the IRS's inheritance tax. Like other charged terms such as "Pro Life" it is used to create a negative image of the inheritance tax which is paid on property you inherit from someone who died.

Death taxes are those taxes imposed upon the estate of a decedent--one who dies. An estate is the sum total of everything owned by the decedent at the time of death. There are two types of death taxes. At the federal level death taxes are called gift and estate taxes, while at the state level death taxes are called inheritance taxes. These are two separate taxes and the amount of each depends upon the value of the estate that is left behind. Not all estates are taxed because they do not exceed the deduc tions and exclusions allowed by law. Death taxes are paid out of the assets of the estate.