Federal Estate and Gift Tax

and Generation-Skipping Transfer Tax ("GST")

 

  Exemptions and Rates

 

                      Estate Tax                             GiftTax             Highest Estate,

                      Applicable Exclusion            Applicable        GST and

Year               and GST Tax Exemption       Exclusion         Gift Tax Rates

 

2002               $1.0 Million*                         $1.0 Million             50%

2003               $1.0 Million*                         $1.0 Million             49%

2004               $1.5 Million                          $1.0 Million             48%

2005               $1.5 Million                          $1.0 Million             47%

2006               $2.0 Million                          $1.0 Million             46%

2007               $2.0 Million                          $1.0 Million             45%

2008               $2.0 Million                          $1.0 Million             45%

2009               $3.5 Million                          $1.0 Million             45%

2010               Estate Tax Repeal               $1.0 Million             35%**

2011               $1.0 Million                          $1.0 Million             60%

 

*   GST Tax Exemption indexed for inflation

**  Gift Tax

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2006 - Gift TaxAnnual Exclusion - $12,000*

 

* Indexed for inflation -

   Unlimited Gift Tax Exclusion for amounts paid on behalf of any donee

   directly to an educational organization, limited solely to tuition costs and

   amounts paid to health care providers for medical services on behalf of

   such donee.