Estate tax is imposed on the value of an individual's estate upon their death or when certain gifts are made during their lifetime.

Estate planning primarily focuses on distributing an individual's assets and wealth to intended beneficiaries in a tax-efficient and orderly manner.

A trust is a legal entity that holds assets for the benefit of designated beneficiaries, allowing for the transfer of assets without triggering immediate taxation.

Funding a trust involves transferring assets, such as cash, property, or securities, into the trust during the lifetime of the individual creating the trust.

Estates and trusts are subject to income tax on the income they generate, just like individuals.

Probate is the legal process through which a court oversees the administration and distribution of an individual's estate after their death.

A durable power of attorney grants legal authority to a designated person to manage an individual's financial affairs if they become incapacitated.

Taxable estate is the value of an estate after deducting allowable deductions and exemptions, which determines the amount subject to estate tax.

Gift tax is levied on the transfer of property during an individual's lifetime, typically when the value of the gift exceeds a certain threshold.

A will is a legal document that expresses an individual's wishes regarding the distribution of their assets and property upon their death.

A qualified terminable interest property trust (QTIP) is a trust designed to take advantage of the marital deduction by transferring assets to a surviving spouse while maintaining control over the ultimate distribution of the assets.

The lifetime exemption is the maximum amount of money or property that an individual can transfer during their lifetime without incurring gift or estate tax.

A living will is a legal document that outlines an individual's wishes regarding their medical care in the event they become incapacitated and unable to make decisions for themselves.

Valuation is the process of determining the fair market value of an individual's assets for estate tax purposes.

An irrevocable life insurance trust (ILIT) is a trust designed to reduce the value of an estate for tax purposes by transferring ownership of life insurance policies to the trust.