You are a financial planner and your good clients, a married couple, arrive at your office. They have heard conflicting information regarding the Federal Estate Tax, the Gift Tax, and the Generation Skipping Transfer Tax (GSTT) systems. They have also heard about the Annual Exclusion. Your clients would like to know more about the Federal Estate Tax, Gift Tax, and Annual Exclusion. They ask you to explain the current status of these taxes including how they work and their implications. They also have 4 adult children, who are married, each having three (3) children. Your clients would like to start some type of a gifting strategy as soon as their business is sold.