What is federal gift and estate tax?
Federal gift and estate tax is sometimes referred to simply as estate taxes or transfer taxes, although your estate may be subject to other kinds of transfer taxes (i.e., state death tax and generation-skipping transfer taxes). When you die, you will leave behind all your possessions, property, and debts. What you leave behind is called your estate. Not surprisingly, estate tax is imposed on your estate, but it is also imposed on gifts you make while you are living (hence the name federal gift and estate tax).