The gift tax is among the least well-known and most misunderstood federal taxes that apply to individuals. Similarly, estate taxes can create substantial burdens for family members in the wake of a loved one’s death. If you are preparing to make a substantial gift or are in the process of planning your estate, it is important to understand if you need to file gift tax return or pay a gift tax, and how your lifetime gift will impact your loved ones and your estate’s future tax obligations.