Some of them provide both income tax and estate tax advantages. The government long anticipated this one. Of course, there are risks with this kind of gift-giving program. The most obvious is that you are legally transferring your wealth. Gift giving to reduce eventual estate taxes must be carefully evaluated to see if you can comfortably afford to give away your property during your lifetime.
Any property given to a tax-exempt charity avoids federal gift taxes.
And money spent directly for someone's medical bills or school tuition is exempt as well. A handful of states impose death taxes. Inheritance taxes are paid by your inheritors, not your estate. Typically, how much they pay depends on their relationship to you. These rates vary from state to state.