Estate and Gift Tax Exemption Schedule & Rates*In the case of decedents dying during:
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Estate and GST tax transfer exemption at death
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Gift Tax lifetime transfer exemption
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Highest estate and gift tax rates
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2001
|
$ 675,000
|
$ 675,000
|
55%
|
2002 and 2003
|
$ 1,000,000
|
$ 1,000,000
|
50% and 49%
|
2004 and 2005
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$ 1,500,000
|
$ 1,000,000
|
48% and 47%
|
2006 through 2008
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$ 2,000,000
|
$ 1,000,000
|
46% and 45%
|
2009
|
$ 3,500,000
|
$ 1,000,000
|
45%
|
2010
|
Taxes repealed
|
$ 1,000,000
|
Gift tax to equal top individual income tax rate
|
* As always, there are some caveats:
These rates are now in-place as a result of the of the biggest tax cut in some 20 years. The new law is very back-loaded. In other words, many of the benefits are not effective for several years. Therefore, certain aspects are subject to change and/or repeal. After the next election in 2008, all bets are off. Death taxes only affect about two percent (2%) of the voting public and, historically, when these taxes have been repealed they have come back later. Three total repeals of the death tax have been followed by reinstatement. History buffs might be interested to know that the repeal of the first death tax (enacted to finance a war with France in 1797 -- a war which never happened) was reversed a few years later to fund the government's quest for more money!