Estate and Gift Tax

Estate and gift taxes are taxes imposed by the government on the transfer of wealth. The estate tax applies to the total value of a deceased person’s assets before they are distributed to heirs, while the gift tax is applicable to assets given away during a person's lifetime. Both taxes aim to tax large transfers of wealth to prevent unfair advantages and generate revenue. There are exemptions and thresholds—meaning only estates or gifts above a certain value are taxed, allowing most individuals to transfer wealth without substantial tax burdens.