A wealthy couple comes to you asking for advise about transferring property to their children. The are vaguely aware of wills and gifts but do not know many details. I particular they keep asking you "why can't we just avoid the estate tax by giving our kids everything while we are still alive?"

Briefly explain to them why they cannot do this. Specifically, address the following:

The relationship of gifts to estates

How much gift can be given subject to an exclusions

Other taxes that apply to gifts either explicitly or implicitly.