Estate Tax exemption for 2015

The basic federal estate-tax exclusion amount for estate of people who die in 2015 is $5,430,000, up from $5,340,000 in 2014. The federal estate-tax exclusion now is set permanently at $5,000,000 and is indexed for inflation.

The federal gift and generation-skipping transfer tax exemption is the same as the estate tax exclusion. The top federal estate-tax exemption is the same as the estate-tax exclusion amount. The top federal estate-tax rate on the largest estates is now 40%, up from 35% in 2012. Under the law passed at the end of 2012, "Portability" has been made permanent. Portability effectively makes the federal estate-tax exclusion amount 'portable' between a husband and wife. When one spouse dies, the other typically can receive the deceased spouse's unused exemption amount without initiating a taxable event.

The annual gift exclusion for 2015 remains at $14,000.

NOTE: this material does not address state estate taxes - you must check the laws in your state - or of the state in which your prospect claims their permanent residency.   

Year	Estate Tax Exemption	Top Estate Tax Rate
2005	$1,500,000	47%
2006	$2,000,000	46%
2007	$2,000,000	45%
2008	$2,000,000	45%
2009	$3,500,000	45%
2010	$5,000,000 or $0	35% or 0%
2011	$5,000,000	35%
2012	$5,120,000	35%
2013	$5,250,000	40%
2014	$5,340,000	40%
2015	$5,430,000	40%