Question

The federal government levies _____________________________ on people who pass assets ____________________________, either after death or during life.

Answer 1

The federal government levies an estate and gift tax on people who pass assets to the next generation, either after death or during life.

Explanation:

• The sources of revenue that the federal government fetches money from are varied and unique at the same time.
• When a property in to be transferred from one person to another, the federal government has to record the transfer of the property for the transfer to be legal.
• Hence, to record this transfer, the federal government levies a tax known as the 'estate and gift tax'.