Double taxation is actually quite common in many countries (where both companies are taxed and then individuals that own the companies and that encash money from their company are then charged personal income tax on top again). Of course, not all estates should be taxed, certainly not. Any estate > say three million dollars (adjusted for yearly inflation) should see a 5% death tax of it payable to the government when the tangible assets are converted to cash. I.e. if you live in an inherited home, you don't pay the death tax until the home is sold. If you choose to sell the home then you would pay the death tax immediately from the proceeds of the sale. This seems very reasonable.