A Practice Note discussing key aspects of the federal gift tax and the rules for making gifts free from gift tax. This Note highlights strategies that can be used to decrease a potentially taxable estate using lifetime gifts and gift tax exclusions, deductions, exemptions, and exceptions. These include the gift tax annual exclusion, gift-splitting, payment of qualified tuition and medical expenses, and the unified credit against gift tax. This Note also discusses when a gift tax return (Form 709) is required and when payment of the gift tax is due.