a) Describe the federal gift and estate taxes. What is the purpose of the federal gift tax? What is the purpose of the estate tax? When are the taxes applied?

b) Review the components of the gross estate and taxable estate. How do the various deductions reduce the gross estate to the taxable estate?

c) Discuss the “unified transfer tax system” and give a few examples. In all cases, make sure that you show how the gift and estate tax systems work together to provide a single transfer tax system.