Question

What is the difference between an estate tax and a gift tax?


A.
An estate tax is on the assets of someone who has died; a gift tax is on assets given from one living person to another.


B.
An estate tax is paid by the executor of an estate; a gift tax is paid by both parties of the gift.


C.
An estate tax is paid on money; a gift tax is paid on money and property.


D.
An estate tax is assessed on all inherited money; a gift tax is only assessed on amounts over $5,000.

Answers

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Answered by GPT-4o mini
The correct answer is:

**A. An estate tax is on the assets of someone who has died; a gift tax is on assets given from one living person to another.**

This option accurately describes the fundamental difference between estate tax and gift tax. The estate tax is levied on the total value of a deceased person's estate, while the gift tax applies to the transfer of assets and money from one living individual to another during their lifetime.

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