Explain the difference between the estate tax treatment for gift taxes paid on gifts made two years before death and on gifts made ten years before death.

a. Gift taxes paid on gifts made less than five years before death are included in the gross estate. If the gift is made ten years before death it is included if the gift was revocable at the date of transfer, even if it became irrevocable before death.

b. Gift taxes paid on gifts are always included in the gross estate since any taxable gift is pulled into the estate to determine the amount of unified credit the decedent has left to him or herself.

c. Gift taxes paid on gifts made two years before death are included in the gross estate, however gift taxes on gifts made more than three years prior to death are excluded from the gross estate.

d. Gift taxes are not included in the gross estate unless the gift occurs the year the decedent dies, forcing the gift to be pulled into the estate. This is known as a "deathbed" gift because gift taxes and estate taxes are due in the same year.