Estate taxes, also known as inheritance or death taxes, are levies imposed by governments on the value of a deceased person's estate. These taxes apply to both real and personal property, including cash, investments, and real estate. The amount owed is based on the total net worth of the estate and varies depending on the jurisdiction. Estate taxes are designed to ensure that wealthy individuals pay their fair share of taxes and reduce inequality in society. However, some argue that these taxes can also discourage saving and investment, as they may force heirs to sell assets or liquidate investments to pay the tax bill.