Its crazy a thing like this exists. A person is mourning the loss of a loved one. Probably using the inheritance money they receive to pay off debts / bills and whatnot that the recently deceased left behind, using that money to pay for a funeral and make sure their children are taken care of (if they have any).
This is crazy, I agree with Nebulous. Their loved ones will already have to deal with funeral costs, having to worry about a tax on their personal property would be terrible. It looks like only a few states have Inheritance Taxes though, and my state isn't one of them.