The estate tax is assessed before the assets are given to the beneficiary or beneficiaries. It is paid from the estate money before the estate is distributed to the beneficiaries.
As of 2018 the combined gross assets have to exceed $5.6 million.
The inheritance tax applies after the assets have been inherited. It is paid from the inherited money and each beneficiary pays it on the received amount.
Not all states have inheritance tax. TN has none.
Based on that information, taxes are not going to be the reason for me to set up a trust if the estate value is less than $5.6 million (in 2018).
However making the most of your assets are non-probatable is not a way to avoid estate tax. For example, half of the amount in a WROS account will be inherited money which can trigger estate tax if the amount is high enough.
