The unified credit is a tax credit that applies to both the estate tax and the gift tax. It effectively provides an exemption from these taxes up to a certain amount, which is $12,920,000 for 2023 (as per IRS Revenue Procedure 2022-38). The unified credit is designed to protect a certain amount of wealth from being subject to estate and gift taxes. Any gift tax paid during one’s lifetime reduces the remaining unified credit available for the estate tax at death. The unified credit is governed by the Internal Revenue Code [Section 2010](https://www.law.cornell.edu/uscode/text/26/2010).