Tax Changes Since 2001

Tax Changes From 2001 Tax Act

This simplified chart shows the key changes as a result of the 2001 Tax Act. It is very likely that Congress will act before 2010 to freeze things at or near the 2009 level (as opposed to letting the estate tax expire in 2010 and then return at the 2001 level for 2011 and future years).

2004

Applicable Exclusion Amount - $1.5 Million
Lowest Estate Tax Rate – 45%
Highest Estate Tax Rate – 48%
Lifetime Gifts Market Value Exemption - $1 Million
Lowest Gift Tax Rate – 41%
Highest Gift Tax Rate – 48%
GST Exemption Amount Allowable - $1.5 Million
GST Transfer Tax Rate – 48%

2005

Applicable Exclusion Amount - $1.5 Million
Lowest Estate Tax Rate – 45%
Highest Estate Tax Rate – 47%
Lifetime Gifts Market Value Exemption - $1 Million
Lowest Gift Tax Rate – 41%
Highest Gift Tax Rate – 47%
GST Exemption Amount Allowable - $1.5 Million
GST Transfer Tax Rate – 47%

2006

Applicable Exclusion Amount - $2 Million
Lowest Estate Tax Rate – 46%
Highest Estate Tax Rate – 46%
Lifetime Gifts Market Value Exemption - $1 Million
Lowest Gift Tax Rate – 41%
Highest Gift Tax Rate – 46%
GST Exemption Amount Allowable - $2 Million
GST Transfer Tax Rate – 46%

2007

Applicable Exclusion Amount - $2 Million
Lowest Estate Tax Rate – 45%
Highest Estate Tax Rate – 45%
Lifetime Gifts Market Value Exemption - $1 Million
Lowest Gift Tax Rate – 41%
Highest Gift Tax Rate – 45%
GST Exemption Amount Allowable - $2 Million
GST Transfer Tax Rate – 45%

2008

Applicable Exclusion Amount - $2 Million
Lowest Estate Tax Rate – 45%
Highest Estate Tax Rate – 45%
Lifetime Gifts Market Value Exemption - $1 Million
Lowest Gift Tax Rate – 41%
Highest Gift Tax Rate – 45%
GST Exemption Amount Allowable - $2 Million
GST Transfer Tax Rate – 45%

2009

Applicable Exclusion Amount - $3.5 Million
Lowest Estate Tax Rate – 45%
Highest Estate Tax Rate – 45%
Lifetime Gifts Market Value Exemption - $1 Million
Lowest Gift Tax Rate – 41%
Highest Gift Tax Rate – 45%
GST Exemption Amount Allowable - $3.5 Million
GST Transfer Tax Rate – 45%

2010

Applicable Exclusion Amount - Repealed
Lowest Estate Tax Rate - Repealed
Highest Estate Tax Rate - Repealed
Lifetime Gifts Market Value Exemption - $1 Million
Lowest Gift Tax Rate – 35%
Highest Gift Tax Rate – 35%
GST Exemption Amount Allowable - Repealed
GST Transfer Tax Rate - Repealed

2011+

Applicable Exclusion Amount - $1 Million
Lowest Estate Tax Rate – 41%
Highest Estate Tax Rate – 55%
Lifetime Gifts Market Value Exemption - $1 Million
Lowest Gift Tax Rate – 41%
Highest Gift Tax Rate – 50%
GST Exemption Amount Allowable - approximately $1.35 Million
GST Transfer Tax Rate – 55%

Disclaimer

Disclaimer of Liability: This site is provided as a public service by the ABA Section of Real Property, Trust and Estate Law. While the information on this site is about legal issues, it is not legal advice or legal representation. Because of the rapidly changing nature of the law and our reliance upon outside sources, we make no warranty or guarantee of the accuracy or reliability of information contained herein or at other sites to which we link. We assume no responsibility for any information, advice or services provided by any site to which we link.

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