Inheritance tax is also called estate tax or death duty. These are taxes on the estate, or total value of the money or property, of a person who had died. Inheritance tax taxes the beneficiaries of the estate, very heavily, as it's considered new income. Having a living trust or living will in place can drastically reduce the tax liabilities of beneficiaries upon the distribution of assets. For this reason, elder persons or their family will hire an elder law attorney, or estate planning lawyer to plan accordingly in advance.