Can you give away assets to avoid the estate tax?
This used to be possible shortly after the estate tax was enacted in 1916, but the gift tax was put into place to close this loophole in 1924. It was repealed in 1926, but the gift tax return for good in 1932.
The federal gift tax is unified with the estate tax, so the exclusion applies to gifts that you give during your life along with the estate that will be transferred after you pass away.