LIFETIME ESTATE & GIFT TAX – EXEMPTION RATE CHART

Tax Year Lifetime Exclusion (Gift Tax Exemption) Top Gift Tax Rate
1997 $600,000 55%
1998 $625,000 55%
1999 $650,000 55%
2000 $675,000 55%
2001 $675,000 55%
2002 $1,000,000 50%
2003 $1,000,000 49%
2004 $1,500,000 48%
2005 $1,500,000 47%
2006 $2,000,000 46%
2007 $2,000,000 45%
2008 $2,000,000 45%
2009 $3,500,000 45%
2010 $5,000,000 35%
2011 $5,000,000 35%
2012 $5,120,000 35%
2013 $5,250,000 40%
2014 $5,340,000 40%
*2015 $5,430,000 40%
Question:What is the Lifetime Exclusion (Tax Exemption)?
Answer:Every US Taxpayer is given a Lifetime “Exclusion” that allows them to transfer Estate assets to others, without receiving value-in-kind, meaning Tax-Free.

Any amount over the Exemption will be subject to Gift Taxes on each dollar at the applicable Tax Rate.
See Top Gift Tax Rates at right of chart.

Note:without proper Estate planning only 1 (one) Exclusion/Exemption is available per married couple.
But with basic Estate planning in place, the Exemption can be doubled to include BOTH spouses, providing the opportunity to transfer/pass up to $10.86 million in Trust.

Call us for more information: 800-730-3020

IRS Issued October 30, 2014

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