An estate tax is a charge upon the decedent's entire estate, regardless of how it is disbursed.
Taxes imposed upon death provide incentive to transfer assets before death.
Gift tax laws are generally designed to prevent complete tax avoidance by this route. The Federal Estate Tax is integrated with the Federal Gift tax so that large estates cannot be shielded from taxation by lifetime giving. Many states also impose an estate tax. The Federal Gift Tax is set forth beginning in 26 U.S.C. 2501 . Generally, the Gift Tax applies to any transfer made without receiving value in return and without regard to intent.