When we lose someone, we love their presence and the memories we share often mean more than anything they leave behind. But when they do leave us gifts a home, savings, cherished items these tokens are meant to ease our journey forward, to help us live on in a way they would have wanted. Yet, in some states, an inheritance tax may apply, turning this inheritance into something that requires a little more planning and care. Inheritance tax is what some states charge when family members or friends receive assets after a loved one has passed away. Unlike estate tax, which is paid by the estate itself before anything is handed out, inheritance tax is the responsibility of the beneficiary — that is, the person who inherits. It’s important to understand the difference because, ultimately, this tax impacts what we hold onto from our loved one’s legacy.