Becuase the dead person has aleady paid taxes on much of his Estate . I think it would more fair to tax the person inheriting the money rather than the one giving it away . This would allow a person with 4 kids to give away four times more tax free money . Money gifted to many qualifing organizations comes tax free , such as Churches , boy scouts , ducks unlimited or pheasants forever . Even money gifted to the state or federal government does not have to first bechopped in half .