Question: Right before his death from a terminal affliction, Ed makes a gift of $500,000 cash that he had planned to bequeath to the church anyway.

Right before his death from a terminal affliction, Ed makes a gift of $500,000 cash that he had planned to bequeath to the church anyway. Presuming Ed had a marginal Federal income tax rate of 35% and his Federal estate tax bracket is 40%, describe the tax effect of his lifetime transfer.

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