Estate and Gift taxes are charged to the estates of people who transfer wealth in values over and above the exclusions and exemptions set by the state and federal governments. Planning can save most estates from these taxes. We can help you plan to avoid liability for these taxes.

The Federal Exclusion Amounts for "upon death" transfers will excuse most estates from estate tax liability, up until December 31, 2009. Then, beginning in 2010, a new system of "basis adjustment" will go into effect.

Without planning, a percentage of your life's savings will be paid to the government when wealth is transferred to heirs. Techniques for avoiding Federal and Massachusetts estate taxes from now until 2010 include:

• using the marital deduction and a marital deduction trust to take advantage of the exclusion amounts available to both spouses
• making gifts to take advantage of the $12,000 annual gift tax exclusion, and the lifetime gift tax exemption amount

Estate & Gift Tax Amount Chart - Law Office of John L. Roberts
Year of Death	Federal Estate Tax Exclusion	Maximum Federal Estate & Gift Tax Rate	Federal Gift Tax Amounts		Massachusetts Estate Tax Threshold
1998	$625,000		Lifetime Exemption	Annual Exclusion
1999	$650,000
2000	$675,000
2001	$675,000
2002	$1 million	50%	$1 mil.	$11,000	$1 million
2003	$1 million	49%	$1 mil.	$11,000	$700,000
2004	$1.5 million	48%	$1 mil.	$11,000	$850,000
2005	$1.5 million	47%	$1 mil.	$11,000	$950,000
2006	$2 million	46%	$1 mil.	$12,000	$1 million
2007	$2 million	45%	$1 mil.	$12,000	$1 million
2008	$2 million	45%	$1 mil.	$12,000	$1 million
2009	$3.5 million	45%	$1 mil.	indexed to	$1 million
2010	Estate Tax Repealed? Carryover basis takes effect for all decedents dying after December 31, 2009.		$1 mil.	inflation in future years	? ? ?