The probate inheritance tax is the money paid in the form of a tax based on the estate of the deceased person. This tax is paid by the beneficiaries of the estate and cannot be paid until the value of the estate has been determined. The determination of the value of the estate is based on the total value of the estate minus any exemptions such as funeral expenses, claims against the state charitable contributions, and property left to the surviving spouse. Probate estate taxes often are not a consideration due to allowable gifts over one's lifetime that reduce the amount of the estate and trusts that can be set up to help avoid probate estate taxes.