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Estate & Gift Tax Basics: Estate Values that Require Estate Tax Planning

 

Estate and Gift taxes are "transfer taxes" charged to the estates of people who leave assets that are worth more than the state and Federal Exclusion Amounts on this chart. The 2013 tax law gives a surviving spouse the right to leave take advantage of any federal estate and gift tax exemption left unused by the predeceased spouse.. Understanding these state and federal estate tax thresholds is the first step toward protecting your lifetime of work and investment.

Estate & Gift Tax Threshold Amounts
Year of Death
Maximum Federal
Estate & Gift Tax Rate

Guide to Estate TaxesMassachusetts map

  Federal Estate Tax Exclusion Amount  
Lifetime Gift
Exemption
Annual Gift Exclusion
Estate Tax Threshold
Estate Tax Threshold
2013
$5.25 million
40%
$5.25 million
$14,000
$1 million
$2 million
Historical Data for Previous Years
2012
$5.12 million per person
This unified credit also
covers taxable gifts during a person's lifetime
35%
$5.12 million, combined with value of estate
$13,000
$1 million
$2 million
2011

$5 million/person
This is a unified credit, which covers taxable gifts during a person's lifetime

35%
$5 million, combined with value of estate
$13,000
$1 million
$2 million

2010
Option 1

Modified Carry over basis
$1.3 million, plus $3 million for qualified property of surviving spouse. Read more

 
$1 mil.
$13,000.00
$1 million
$3.5 million
2010 Option 2
$5 million per person
Read more
35%
$5 million, combined with value of estate
$13,000
$1 million
$3.5 million
2009
$3.5 million
45%
$1 mil.
$13,000
$1 million
$ 2 million
2008
$2 million
45%
$1 mil.
$12,000
$1 million
$ 2 million
2007
$2 million
45%
$1 mil.
$12,000
$1 million
$ 2 million
2006
$2 million
46%
$1 mil.
$12,000
$1 million
$ 2 million
2005
$1.5 million
47%
$1 mil.
$11,000
$950,000
$ 2 million
2004
$1.5 million
48%
$1 mil.
$11,000
$850,000
 
2003
$1 million
49%
$1 mil.
$11,000
$700,000
 
2002
$1 million
50%
$1 mil.
$11,000
$1 million
 

Federal Estate & Gift Tax Resources
Frequently Asked Questions about Federal Estate Taxation
IRS Pamphlet:
Introduction to Estate and Gift Tax
Form 706

 

New portability rules: A cure for incomplete estate planning

Draft Form 706 provides check box to not elect portability

Draft Form 706