National Association of Estate Planners and Councils

February, 2011 Newsletter
Provided by Leimberg Information Services

See other issues.

Estate and Gift Tax Rates and Exemption Amounts Chart

Year

Annual Gift
Exclusion

Exemption Value of
Unified Credit
(Gift Exemption When
Not Unified)

Threshold of
Highest
Statutory
Tax Rate

Highest Statutory
Tax Rate (Percent)

1975-1976

$3,000

$60,000 ($30,000)

$10,000,000

57.75 Gift: 77 Estate

1977

$3,000

$120,667

$5,000,000

70

1978

$3,000

$134,000

$5,000,000

70

1979

$3,000

$147,333

$5,000,000

70

1980

$3,000

$161,563

$5.000,000

70

1981

$10,000

$175,625

$5,000,000

70

1982

$10,000

$225,000

$4,000,000

65

1983

$10,000

$275,000

$3.500,000

60

1984

$10,000

$325,000

$3,000,000

55

1985

$10,000

$400,000

$3,000,000

55

1986

$10,000

$500,000

$3,000,000

55

1987-1997

$10,000

$600,000

$3,000,000

55

1998

$10,000

$625,000

$3,000,000

55

1999

$10,000

$650,000

$3,000,000

55

2000-2001

$10,000

$675,000

$3,000,000

55

2002

$11,000

$1,000,000

$2,500,000

50

2003

$11,000

$1,000,000

$2,000,000

49

2004

$11,000

$1,500,000 ($1,000,000)

$2,000,000

48

2005

$11,000

$1,500,000 ($1,000,000)

$2,000,000

47

2006

$12,000

$2,000,000 ($1,000,000)

$2,000,000

46

2007-2008

$12,000

$2,000,000 ($1,000,000)

$1,500,000

45

2009

$13,000

$3,500,000 ($1,000,000)

$1,500,000

45

2010

$13,000

$5,000,000 ($1,000,000)

$500,000,

35

2011

$13,000

$5,000,000

$500,000

35

Notes:

Executors of estates of decedents who die during 2010 generally may elect to have the EGTRRA 2010 estate tax and basis rules apply as if the estate tax provisions of the 2010 Act had never been enacted.  If such an election is made: (1) no estate tax applies; (2) the generation skipping transfer tax remains in effect with a $5,000,000 exemption and a zero percent rate; (3) the gift tax exemption and rate would be $1,000,000 and 35 percent; and (4) basis of assets acquired from the decedent would take a modified carry-over basis under section 1022.

The 2010 Act modifies the rate table in section 2001( c )  to provide for a $500,000 threshold for the highest statutory rate of 35 percent.  However, the estate and gift tax exemptions for 2010 exceed this threshold amount, with the result that any transfers up to the exemption amounts will not be taxed.  Therefore, in practice, the 35-percent rate applies only to 2010 transfers that exceed a taxpayer’s estate or gift tax exemptions, and any lower marginal rates listed in the section 2001 ( c ) rate table will not apply.

The 2010 Act modifies the rate table in section 2001( c )  to provide for a $500,000 threshold for the highest statutory rate of 35 percent.  However, the estate and gift tax exemptions for 2011 exceed this threshold amount, with the result that any transfers up to the exemption amounts will not be taxed.  Therefore, in practice, the 35-percent rate applies only to 2011 transfers that exceed a taxpayer’s estate or gift tax exemptions, and any lower marginal rates listed in the section 2001 ( c ) rate table will not apply.

HOPE THIS CHART HELPS YOU HELP OTHERS MAKE A POSITIVE DIFFERENCE!

Steve Leimberg

CITE AS:

LISI Estate Planning Newsletter # 1762 (January 14, 2011) at http://www.leimbergservices.com 

All NAEPC-affiliated estate planning councils are eligible to receive a discounted subscription rate to the Leimberg LISI service. Please see more information about the offering. You may also contact your local council office / board member to find out whether they are offering the service as a member benefit.

Follow Us: LinkedIn YouTube Mailing List

Find an
ESTATE PLANNER

Find an
ESTATE PLANNING COUNCIL


Robert G. Alexander 
Webinar Series


Yearly Subscription Available!




‚ÄčFor Accredited Estate Planners® Only:

Annual Renewal & Recertification

Log in HERE to access AEP only benefits, including


Frequently Asked Questions for estate planners and councils

Estate Planning Hall of Fame®