Question: We know the applicable exclusion amount (AEA) means the amount that can pass estate or gift tax free. We also know that the amount for

We know the applicable exclusion amount (AEA) means the amount that can pass estate or gift tax free. We also know that the amount for 2021 is $11,700,000. Yet nowhere in the calculation of either the estate or the gift tax is the AEA subtracted. Describe how the unified credit is the real source of the tax shelter and how any given unified credit relates to the AEA.

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