Chart of current and historical estate tax exemptions, gift tax exemptions, and GST exemptions


 

2010 2011 2012 2013
Estate Tax
Exemption amount * $5.0 million

*

$5.0 million

*

$5,120,000

*

$1.0 million

*See note below **

Tax rate Flat (35%) Flat (35%) Flat (35%) Progressive (up to 55%)
Elections Can elect out of estate tax, but §1022 carryover basis will apply ($1.3 million “free-basis” + $3.0 million spousal bonus) Can elect to add “deceased spousal unused exclusion amount” (basically, the unused exemption from the estate of the decedent s last deceased spouse or the exemption amount in effect at the decedent s death, whichever is less) to the exemption amount Can elect to add “deceased spousal unused exclusion amount” (basically, the unused exemption from the estate of the decedent s last deceased spouse or the exemption amount in effect at the decedent s death, whichever is less) to the exemption amount None

** Note that President Obama’s approved  a $5 million dollar exemption, while all Republican presidential candidates favor repeal of estate tax.

Gift Tax
Exemption amount $1.0 million $5.0 million (plus, if elected, the “deceased spousal unused exclusion amount”) $5,120,000 (plus, if elected, the “deceased spousal unused exclusion amount”) $1.0 million

See note above.

Tax rate Flat (35%) Flat (35%) Flat (35%) Progressive (up to 55%)
Generation-Skipping Transfer Tax
Exemption amount $5.0 million $5.0 million $5,120,000 $1.0 million

See note above.

(indexed from 1997)

Tax rate Zero Flat (35%) Flat (35%) Progressive (up to 55%)

* Note the evolution of estate tax exemption amounts: $161,000 in 1980; $225,000 in 1982; $275,000 in 1983; $325,000 in 1984; $400,000 in 1985; $500,000 in 1986; $600,000 from 1987 – 1997; $625,000 in 1998; $650,000 in 1999; $675,000 in 2000-2001; $1,000,000 in 2002-2003; $1,500,000 in 2004-2005; $2,000,000 in 2006-2008; $3,500,000 in 2009; $5,000,000 in 2010-2011.

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