and life goes on

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I'm just having a hard time understanding why when someone dies, their bills and debts still exist and yet when you inherit money from someone who is deceased it's taxed until nothings left. It just doesn't make sense. I understand that life has to go on after a loved one has died but the debts and bills and money loss don't make it any easier. Can someone please tell me their thoughts on this?? I mean geeze! A funeral alone costs SO freaking much!