An estate tax is a tax applied to a deceased person's estate regardless of whether or not the estate is being distributed via a will or it is intestate. This tax is based on rules set by the Federal Government through the IRS. There may be additional estate taxes due to individual states. If there is a state tax on the estate it may be referred to as an inheritance tax. There are ways for individuals to avoid the estate tax such as leaving it to charitable organizations or having portions of it set up in trusts that are not taxable according to the estate tax. Certain portions of the estate that are deducted before the final calculation of the estate is made, such as funeral expenses, property left to a surviving spouse and charitable contributions.