Estate and Gift Tax Regulations

Estate and gift tax regulations are laws that apply to the transfer of wealth either upon death (estate tax) or as a gift during a person’s lifetime (gift tax). They ensure that sizable transfers are taxed to support public services. Both taxes have annual and lifetime exemptions, meaning small gifts or estates below certain thresholds are tax-free. The estate tax generally applies to estates exceeding a certain value and is paid by the estate before distribution. Gift tax applies to large gifts above annual exclusions. These regulations aim to regulate wealth transfer and prevent tax evasion while allowing modest gifts and bequests.