There are two major common ways to start the estate planning process. Either the creation of a will or the creation of a trust. Both are designed to determine who is the beneficiary of specific assets. But the similarities end there. For more information of trusts or wills, contact a lawyer or certified accountant.
Gift tax is a tax that is imposed during the lifetime of the giver.
Unlimited gifts may be given to a spouse or to charity without tax. But an applicable exclusion is satisfied before taxes are required. The applicable exclusion is a specific amount of money depending upon the year. Estate tax is one that is imposed upon death, but in the event of a married couple it is not imposed until the death of both parties. The Generation-Skipping Transfer Tax is imposed both at death and during the lifetime of an individual.