Isn't an inheritance a participation trophy?
The recipient of the inheritance did not earn it based on his own merit.
His parents/ancestors did.
If you advocate rewarding purely based on merit, why do you insist on rewarding people for things that other people did?
The point is that if you advocate inheritance, you really don't advocate a pure meritocracy. You think it's OK for people to benefit from advantages given to them by the success of their ancestors, which is fine, just not merit.
Others advocate doing things to help those whose parents did not leave them with that starting advantage. You call that a handout, but the truth is they are both handouts. The source and recipients are the difference.
For the record, I don't advocate for a 100% inheritance tax. And FI think people should be rewarded for their effort. That's not mutually exclusive with programs to assist those without the benefit of successful parents. These really aren't black and white one way or the other issues.