Estate and Gift Tax Law

Estate and Gift Tax Law pertains to taxes imposed on the transfer of wealth. Estate taxes apply when an individual passes away, taxing the total value of their assets before distribution to heirs. Gift taxes, on the other hand, are levied on transfers of property or money during a person's lifetime. Both taxes aim to limit the avoidance of taxation through wealth transfer. There are annual and lifetime exemptions, allowing individuals to gift or leave a certain amount without incurring taxes. Understanding these laws helps in proper estate planning and ensures compliance with tax obligations.