February, 2011 Newsletter
Provided by Leimberg Information Services
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Estate and Gift Tax Rates and Exemption Amounts Chart
|
Year |
Annual Gift |
Exemption Value of |
Threshold of |
Highest Statutory |
|
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
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