Estate Tax Law

Estate tax law governs the taxation of an individual's assets after they pass away. When someone dies, the value of their estate—total assets minus debts—is assessed, and if it exceeds a certain threshold, the estate may owe taxes to the federal government and, in some states, to the state government. This is often referred to as the "death tax." Gift tax law, on the other hand, taxes large gifts made during a person's lifetime. Both laws aim to prevent significant tax avoidance and ensure the government collects revenue from wealth transfers, while allowing for certain exclusions and deductions.