This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
Estate Tax Applicable Exclusion Amount Increased
An estate tax return for a U.S. citizen or resident needs to be filed only if the gross estate exceeds $2 million for the
year of death. The change
is effective for estates of decedents dying after 2005 and before 2009.
Annual Exclusion for Gifts Increased
The annual exclusion for gifts of present interests made to a donee has increased to $12,000. The annual exclusion for gifts
made to spouses who
are not U.S. citizens has increased to $120,000.
Maximum Estate and Gift Tax Rate Reduced
For estates of decedents dying, and gifts made, during 2006, the maximum rate for the estate tax and the gift tax is 46%.
Generation-Skipping Transfer (GST) Exemption
For 2006, the generation-skipping transfer (GST) lifetime exemption is $2 million.
Annual Exclusion for Gifts to Spouses Increased
The annual exclusion for gifts made to spouses who are not U.S. citizens has increased to $125,000.
Maximum Estate and Gift Tax Rate Reduced
For estates of decedents dying, and gifts made, after 2006 and before 2010, the maximum rate for the estate tax and the gift
tax is 45%.
