Estate taxes are taxes imposed on the transfer of a deceased person's assets to their heirs. These taxes are calculated based on the total value of the estate, which includes property, investments, and other assets. The tax rate can vary depending on the size of the estate and the laws of the state or country where the deceased lived. In many places, there is a threshold, known as the exemption limit, below which no estate tax is owed. This means that smaller estates may not be subject to these taxes, while larger estates may face significant tax liabilities before the assets are distributed to beneficiaries.