Have you wondered what the federal landscape of estate tax has looked like over the last twenty
years? It is helpful to have an understanding of current law and future changes in the law when
planning your estate. Please get in touch with us if you have any questions about estate tax and
how your estate may be affected.
| Year | Estate Tax Exemption | Top Estate Rate |
|---|---|---|
| 2001 | $3.5 million | 55% |
| 2005 | $1.5 million | 47% |
| 2009 | $3.5 million | 45% |
| 2010 | Estate tax repealed. | N/A |
| 2011 | $5 million | 35% |
| 2017 | $5.49 million | 40% |
| 2020 | $11.58 million | 40% |
| 2021 | $11.7 million | 40% |
| Year | Law | Outcome |
|---|---|---|
| 2001 | Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) | $1.35 million tax cut repealing the estate and generation-skipping transfer (GST) tax in 2010, and was phased out over a nine year period. In 2010, there was no estate of GST tax. |
| 2010 | Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act | Extended most of EGTRRA until 2012, increased the exemption to $5 million in 2011, created a 35% maximum tax rate. Introduced the concept of portability of lifetime exemptions between spouses. |
| 2013 | American Taxpayer Relief Act | Estate and gift tax provisions became permanent at $5 million indexed for inflation and the tax rate at 40%. |
| 2017 | Tax Cuts and Jobs Act | Raised the exemption to $11,580,000 for 2020 indexed for inflation. |
