Unified Estate And Gift Tax Legal Meaning and Definition

Here is a simplified definition of the legal term Unified Estate And Gift Tax.

(n) Unified Estate and Gift Tax

Unified Estate and Gift Tax is a federal tax imposed on the combined value of a person's estate and any gifts they have given during their lifetime. The primary purpose of this tax is to prevent individuals from avoiding estate taxes by transferring their property as gifts during their lifetime. The tax includes in its calculation the value of any gifts for which no gift tax has been paid, providing a more accurate determination of the deceased's total wealth.